Sony Opzet Rapport

Consultancy report
THE ULTIMATE EMERGING

MARKET FOR SONY CORP.
Ria van der Veen
JANUARY 2016
1
2
THE ULTIMATE EMERGING

MARKET FOR SONY CORP.
Consultancy report

Ria van der Veen

Commercial Economics, Class X
Studentnumber: 500663797
Department
New Business
Part of Sony
Corporation
Amsterdam, 21st January 2016

Amsterdam University of
Applied Sciences
THE ULTIMATE EMERING MARKET
ACKNOWLEDGEMENT
In your living room, bedroom, and office or perhaps in your
hand right now theres a good chance that you are in
possession of a Sony smart device. And if you dont own a
Sony item right now, probably you have ever owned one for
example one of the first Walkmans. Although many people
own a Sony product, the company has been through some
tough years. The consultancy report is the result of extensive
research and is written by Ria van der Veen, a second year
student at the Amsterdam University of Applied Sciences.
The reason for writing this consultancy report is to find the
ultimate new export market for Sony Corporation. The
objective is to discover the most interesting emerging market,
which earns the strategic focus of Sony in the coming five
years. A prosperous market where people have the wealth
that they can buy luxury items. A market where people can
work on self-development by purchasing product that express
their identity. Ultimately, the corporate objective is of great
importance: Profit generation and investment for growth.
This report is written with the intention to contribute to this
goal.
Writing this report is a great opportunity that allows me to
continue to develop as a future marketer. I have taken efforts
in this project. However, it would not have been possible
without the kind support and help of many individuals. I would
like to extend my sincere thanks to all of them. I would like to
express my special gratitude towards Mr Zouhair ben
Abdelkarim and Mrs Ria van Kempen for their supervision and
kind co-operation when needed. I also want to thank my
partner for his keen insights and support when I didnt know
how to proceed. With this help, I have managed to complete
this consultancy report.
Enjoy reading this consultancy report!
With kind regards,
Ria van der Veen
Executive Summary
Pre face
9
11
1.
ABOUT SONY
13
2.
PRE-FILTER ANALYSIS
21
3.
ROUGH SCAN
29
4.
DETAILED SURVEY
37
5.
MALAYSIA [ DESTEP / 6D MODEL / MABA ]
45
6.
MEXICO [ DESTEP / 6D MODEL / MABA ]
53
7.
BRAZIL [ DESTEP / 6D MODEL / MABA ]
61
8.
MALAYSIA [ DESTEP / 6D MODEL / MABA ]
69
9.
ADVICE & STRATEGY
79
Conclusion
References
Appendices
85
87
91
I.
II.
III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.
XII.
XIII.
XIV.
XV.
XVI.
XVII.
XVIII.
XIX.
XX.
93
94
97
108
109
110
113
119
120
121
124
130
131
140
148
159
170
182
184
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COUNTRY SELECTION MODEL

PRE-FILTER CRITERIA
COUNTRY PROFILES: PRE-FILTER
PRE-FILTER EXCEL
OVERALL RANKINGS PRE-FILTER
ROUGH SCAN CRITERIA
COUNTRY PROFILES: ROUGH SCAN
ROUGH SCAN EXCEL
OVERALL RANKINGS ROUGH SCAN
DETAILED SURVEY CRITERIA
COUNTRY PROFILE: DETAILED SURVEY
DETAILED SURVEY EXCEL
DESTEP MALAYSIA
DESTEP MEXICO
DESTEP BRAZIL
DESTEP CHINA
6D MODEL & CULTURAL HABITS
MABA FILTER CRITERIA
MABA COMPLETE EXCEL
SUBQUESTIONS & RESEARCH QUESTIONS CONSULTANCY REPORT
EXECUTIVE SUMMARY
One of Sony Corporations objectives is expand the business in the
emerging markets. Therefore Sony asked us to gain insight into the
main emerging markets and to provide an advice concerning in
which main emerging markets Sony Corporation should concentrate
their sales efforts in the next five years.
The first chapter contains a brief introduction into Sony Corporation.
In addition to the financial corporate objectives, the company
attaches great value to the environment and has special objectives to
support the environment. Secondly, we gained more insight in the
productrange of Sony by investigating the marketing mix of Sony. We
learned that Sony definitely earned its innovative character, with the
development of the Walkman, SmartWatch, BRAVIA TVs, Xperia
Tablets and smartphones and Cybershot cameras.
Although Sony is a very innovative company, it has been through
some tough years. Therefore they asked us to write this consultancy
report. This report provides an analysis of 23 emerging markets and
eliminates the countries which doesnt form an interesting market to
entry for Sony Corporation. The evaluation of multiple macroeconomic market details has made it possible to clearly distinguish
the countries from each other. In the first phase the pre-filter
analysis the first thirteen countries were eliminated. High taxes and
import duties and restrictive measurments are for example filter
criteria in this first phase of the model.
The top ten remaining countries are furtherly elaborated in the rough
scan the second phase of the Country Selection Model. Multiple
economic and govermental criterions are used to survey the
countries background to determine if it might be an interesting new
market for Sony Corporation. A destabalized government of a low
prosperity level might indicate that this isnt the case. In this stage we
bid farewell too Poland, Hungary, Turkey, Uruguay, Russia and
Belarus. The countries China, Mexico, Brazil and Malaysia move on to
the final stage of the Country Selection Model: the Detailed Survey.
In the detailed survey the attention is focussed on

the consumer electronics market within the
country. Secondly we consider the environmental
performance of the country and possible trade
promotions which could make it more attractive to
expand the Sony market for smart devices to this
country. A dropping economy for Brazil or a low
score on the Environment Performance Index for
China it could imply that the country isnt that
interesting for Sony. But before we can make such
a statement, each of the four remaining countries
is examined individually with a DESTEP analysis, a
cultural analysis with the Six Dimension Model
and a MABA analysis.
Although all countries are located in the green
area of the MABA analysis, there are considerable
differences. The Chinese market is enourmous,
but we also learned that there is more demand for
domestic products and there is a strong mutual
hatred between Japan and China. The Mexican
strategy following the Country Selection Model is
the protect position strategy, but it is also a
country with a major corruption problem. The
relatively small Malaysian market scored
predominantly positive also in the different
stages of the Country Selection Model but
investment is necessary to realise growth
(strategy: build selectively). Brazil is characterized
with a dropping, but tremendous market.
Although the country seems to be very interesting
on first sight with for example the Olympics 2016
coming up, it isnt
an interesting market
economically seen.
In the last chapter one of the four abovementioned countries is selected for further
elaboration. We provide Sony with an strategic
advice for how to expand their market in the last
remaining emerging market. Which country
should it be? Malaysia, Brazil, China or Mexico?
Youll find out in chapter nine, starting at page 79.
10
PREFACE
On April 1, 2012 Kazuo Hirai became President and CEO of Sony Corporation, succeeding
Sir Howard Stringer. In the years before Sonys operating results, particularly in the
electronics business, were negatively affected by the Great East Japan Earthquake and the
2011 Thailand floods. Conditions were exacerbated by the economic downturn across the
developed world, which caused other currencies to fall in comparison with the persistently
strong yen. Owing to reduced sales in the consolidated sales and operating revenue for
the period declined 9,6%. Sony recorded an operating loss of 67,3 billion yen, compared
to the 199,8 billion yen of operation come recorded in previous fiscal year. In order to
swiftly rebuild and restore the Sony Group, Sony introduced in 2012 a new top
management structure aimed at accelerating decision-making and strategic executing1.
Sony Corporation, commonly referred to as Sony, is a Japanese corporation
headquartered in Knan Minato, Tokyo, Japan 1 1 . Its diversified business is primarily
focused on the Consumer and Professional electronics with divisions Gaming,
Entertainment and Financial services sectors 1 . The company is one of the leading
manufacturers of electronic products for the consumer and professional markets1. Sony is
ranked 116th on the 2015 list of Fortune Global 5001.
Sony Corporation is the electronics business unit and the parent company of the Sony
Group, which is engaged in business through its four operating segments Imaging
Products & Solutions Sector, Pictures Entertainment, Music Entertainment and Financial
Holding Group 1 1 . These make Sony one of the most comprehensive entertainment
companies in the world.
Problem definition
This report contains an analysis from 23 to 10 countries and finally an advice with four
potential emerging and thereby lucrative markets. The final chapter concentrates on the
strategic focus of Sony and positioning in the selected country. Unless the changes in
previous years, the 2014 forecast is significantly below the financial targets we announced
in April 2012. After a net loss of 170 billion yen for fiscal year 2014 and eliminating
dividends for this year, Sony couldnt meet shareholders expectations. Financial targets
Sony established may not have been suitable, and that they likely did not implement
sufficient cost reduction measures. Sony recognized these missteps and has worked to
address the issues that hinder Sonys fundamental transformation1.
Progress is necessary, however, in order to rediscover growth and discover emerging
markets. To achieve growth in the next five years, Sony invited us to update their country
analysis of the main emerging markets. With the economy becoming more and more
competitive with each passing day, having appropriate knowledge about the concerns and
preferences of your customers and become integral for any business, is essential. Business
market research not only identifies new business opportunities and changing market
trends, it also recognizes new areas for expansion, and increases your customer base. This
report contains recommendations concerning markets Sony should concentrate their sales
efforts in the next five years.
Main research objective

Gain insight into the main emerging markets (four countries) for Sony Corporation and to
provide our advice concerning in which main emerging markets Sony Corporation should
concentrate their sales efforts for smart devices on in the next five years.
Problem Statement
Which country forms the most interesting emerging market for Sony Corporation and
where should Sony concentrate their sales efforts for smart devices in the next five years?
Sub-questions
1. What is Sonys business profile?
2. Which 13 countries will be eliminated of the list of potential interesting markets?
3. Which ten countries will be comprehensively researched and form an interesting
market?
4. In which four countries should Sony concentrate their sales efforts in the next five
years?
5. Which country should have the strategic focus of Sony and how should they
prioritize the strategic focus of Sony over the key industries?
To answer the main question and the sub-questions, we used the country selection model.
We did a lot of desk research to gain insight into the possible emerging markets for Sony
Corporation. After the pre-filter analysis, were another ten countries left. The rough scan
includes a more extensive form of desk research and eliminated another six countries of the
list. With four interesting emerging markets left, the detailed survey is the last step to be
taken. With this finished, a recommendation for most interesting emerging market for Sony
Corporation follows. Exclusively for this country the last sub-question will be answered. The
result: a specified recommendation regarding one country regarding the recommended
strategic focus for Sony Corporation.
This advisory report is submitted on the 21st of January 2016 to the board of directors of
Sony Corporation and the Hogeschool van Amsterdam.
12
Sources:
1
"Letter to Stakeholders, Annual Report 2012." (PDF). Retrieved 22 November 2015.
1
"Access & Map." Sony Global. 1-7-1 Konan Minato-ku, Tokyo 108-0075, Japan. Retrieved 22 November 2015.
1
"Sony Global - Corporate Information." Retrieved 22 Novemer 2015.
1
"Consolidated financial results for FY2014, Sony Corporation." (PDF).
1
"Sony Corporate History." Retrieved 22 November 2015.
1
"Global 500 - Fortune" Fortune. Retrieved 22 November 2015.
1
"Organization Data." Retrieved on 22 November 2015.
1
"Business Overview, Annual Report 2013." PDF). Retrieved 22 November 2015.
1
"Sony Mid-Term Corporate Strategy for FY2015 - FY2017." Corporate Info News Releases. Retrieved on 22 November 2015.
1
ABOUT SONY

14
1. ABOUT SONY
Sony Corporation, commonly referred to as Sony, is a Japanese corporation headquartered in Knan
Minato, Tokyo, Japan12. Its diversified business is primarily focused on the Consumer and Professional
electronics with divisions Gaming, Entertainment and Financial services sectors3. The company is one of
the leading manufacturers of electronic products for the consumer and professional markets4. Sony is
ranked 116th on the 2015 list of Fortune Global 5005. In this chapter, the following sub-question will be
elaborated: What is Sonys business profile?.
1.1 Mission Statement, Vision, Corporate Objectives

Mission statement6
At Sony, our mission is to be a company that
inspires and fulfils your curiosity. Our
unlimited passion for technology, content and
services, and relentless pursuit of innovation,
drives us to deliver ground breaking new
excitement and entertainment in ways that
only Sony can. Creating new cultures and
experiences.
Everything we do is to move you emotionally.
Be Moved.
Vision7
Sony is striving to achieve a zero environmental footprint throughout the entire product life cycle. The
ultimate goal of Road to Zero inspires our imagination, innovative technology and also your curiosity.
Our unique environmental initiatives are expanding around the world as we continue down the Road to
Zero.
Corporate objectives8
Sony is setting profit generation and investment for growth as the theme of its mid-range corporate
plan from fiscal year 2015 through fiscal year 2017. Therefore, the corporates objective is to transform
the Sony Group into a highly profitable enterprise with a growing market share.
Long-term objectives
Sonys first long-term goal is to achieve zero carbon by 2015. For example: the BRAVIA range of TVs
introduced by 2010 had a strong focus on eco credentials.
"Access & Map." Sony Global. 1-7-1 Konan Minato-ku, Tokyo 108-0075, Japan. Retrieved 22 November 2015.
"Sony Global - Corporate Information." Retrieved 22 Novemer 2015.
3
"Consolidated financial results for FY2014, Sony Corporation." (PDF).
4
"Sony Corporate History." Retrieved 22 November 2015.
5
"Global 500 - Fortune" Fortune. Retrieved 22 November 2015.
6
"Mission Statement." About Sony. Retrieved 22 November 2015.
7
"Vision." Sony and the Environment. Retrieved 23 November 2015.
8
"Objectives." Profit generation and investment for growth. Retrieved on 23 November 2015.
2
The second long-term objective of Sony Corporation is to be the leading provider in the electronics
industry and to maintain its core market segment by developing ground breaking products, services
and technologies.
Short-term objectives
The corporate strategy of Sony announced by NEW CEO Kazuo Hirari as of 2012 is One Sony an
integrated new management approach to accelerate all the decision-making in the entire company. The
new approach marks the beginning of a transformation aimed at driving growth and creating new
value9.
This includes five initiatives:
1. To strengthen the core business areas in the market;
2. Target to rebuild the television segment to the growing and ever changing technology market;
3. To expand the business in the emerging markets;
4. Creating the new business and accelerating innovation;
5. Realizing the business portfolio and optimizing resources.
Corporate Social Responsibility (CSR) at Sony10

It is the core corporate responsibility of Sony Group to the
society to pursue its corporate value enhancement through
and sound business practice.
Sonys corporate social responsibility (CSR) activities reflect its
philosophy of implementing sound business practices;
innovating to realize products, services and content that
inspire and excite; assisting the communities in which we
operate; and helping to shape a better, more sustainable
society. Sony believes that these activities both benefit society
and enhance corporate value.
1.2 The Marketing Mix

Product
Sonys product portfolio exists of eight different product groups: Consumer Electronics, Mobile, Game,
Movie, Music, Network Services, Financial Services and Professional Services. In this sub chapter a short
summary of the consumer electronic products Sony produces, such as smartphones, tablets, smart TVs
and other smart devices. Sonys electronic products and services are marketed throughout the world
under the trademark Sony.
Sony is a renowned multinational company and known for its quality products. This report is about
finding a lucrative emerging market for the product category Smart devices. It is all about creating
inspirational, innovative and high quality products with unimaginable possibilities. A consumer used to
need at least 50 devices to do the same things as what they can do with their smart device: phone, mail,
map, alarm, camera, radio, CD-player, television, video store, games, newspapers, computer, watch,
clock, pen, notebook, pedometer, sport instructor, calculator, thermometer, mobile banking and the
list goes on and on. Everything is possible with a smart device.
"Corporate Strategy." Sony Corporation. Retrieved on 4 January 2016.

"CSR at Sony." Annual Report 2013. Retrieved on 23 November 2015.
10
16
Consumer Electronics11: Mobile, Tablets & Smart Devices12

Sony developed the iconic Walkman and they gave us the freedom to enjoy music easily whenever and
wherever we pleased. In current age Sony Walkman Series has evolved in not only a wireless but also a
waterproof music sensation.
As one of the first companies in the world innovative they are Sony developed a SmartWatch for an
affordable price and compatible with all Android devices. Currently their third edition is on the market:
you can talk to it, fill it with music, track your movements and customise it to suit your personal style.
The Sony BRAVIA TVs and matching home theatre systems have been a single-minded quest for picture
quality that captivates and audio with truly realistic presence. The outstanding performance
distinguishes Sony from their competitors.
In the ever-innovative Xperia line, theres a new Xperia Z smartphone and tablet. Shaped like a simple,
exquisite bar and slate, they reflect a future of greater freedom.
Cyber-shot T series is a follow up on the innovative first edition Cyber-shot camera. The idea: a
compact and slim body, stylish device with the ultimate high-resolution camera with the unique Cybershot technology of Sony.
Next to above-mentioned products offers Sony a wide range of cameras and lenses, digital paper (such
as eBooks), projectors, Blu-ray Disk & DVD players, audio systems, wireless speakers & speaker docs,
headphones, multiple digital music players, voice recorders, radios & portable CD players. The broad
assortment of Sony exists of video cameras, in-car receivers & players, speakers & amplifiers, portable
chargers, batteries, memory cards & flash drivers, cables and probably much more.
Price
Being a company that emphasizes product quality, it tends to sell its products with price range from
moderately high to high-prices, depending on the use and targeted customers. Their prices most often
match the price ranges their competitors have. We may speak of a competition-oriented price-strategy
but we rather choose the market-oriented price-strategy above that. It is quite possible that Sony keeps
the prices of competitors in mind while determining their prices, but it seems largely a market-oriented
situation, while customers eventually buy the products. It is already hard enough to distinguish the Sony
brand within the wide range of competitive products, so the price should match what the consumer is
willing to pay (market-oriented strategy). The other facets of the marketing mix will have to make the
distinction for the customer.
In the Sony assortment there are multiple cheaper products, but these are almost always related
products. Think of new or better headphones for a new smartphone or lenses for a camera and
videogames for the PlayStation.
Place
Sony has an online presence in several formats, for example their own website provides information on
products and their prices. The products are registered in 204 countries and territories around the globe.
Sony Corporation itself has more then 30 subsidiaries companies in Japan itself and more than 50
affiliated companies outside of Japan. Most of the sales come from third party stores and websites, such
as Amazon, Best Buy and Saturn.

11
12
"Consumer Electronics." Retrieved on 23 November 2015.

"Sony new product releases." Sony Corporation. Retrieved on 4 January 2016.
Wholesale distributors of Sony Products include but are not limited to: Best Wholesale co. Ltd,
Dongsheng International Trade Co. Ltd, Denzuke Network Sdn. Bhd., Front-Page Trade Co., Ltd.
Promotion
Sony employs an umbrella branding strategy by placing the product name along with corporate name.
This strategy lets the product to assume its own identity and positioning, but also draws strength of the
corporate brand. The goal is to bolster consumer confidence in the product. Sony has used this strategy
to launch new products.
In February 2013, Sony has introduced a new strapline, Be Moved, as it seeks to align its marketing into
the groups overall communications strategy. The new Be Moved line will be used as a long-term
campaign platform to better fit with the companys wider One Sony strategy, which is centred around
three core pillars of mobile, gaming and digital imaging13.
Sony actually outspends their competitors big time in advertising and it appears to be working to some
degree. Promotion usually empowers the viewers and shows them what Sony products will feel this way.
Advertising14
Advertising is any paid form of non-personal mass communication through various media to present
and promote products, services and ideas by an identified sponsor. So far, SONY has advertised its
products through many different ways and media. Through TV we have seen multiple advertisements of
its products such as BRAVIA televisions. Sony also advertises its products by targeting those favourable
television programs, like sports, series and movies. For example, Sony products are used in the latest
James Bond movie Spectre. This is called product-placement.
Sony used direct response advertising. This is a type of advertising that encourages the consumer to
response either by telephone, mail or the Internet. Such advertising is done through direct mail of
catalogues / physical advertisements in magazines.
Sales Promotion
An other strategy of Sony is Sales Promotion: a marketing discipline that utilizes a variety of incentives
techniques to structure sales related programs targeted to customers, trade and/or sales levels that
generate a specific, measurable action or response for a product or service. For example after the
release of the Sony BRAVIA television sets, Sony promoted them by early bird prizes by saying that all
BRAVIA full HD LCDTVs purchased during July 2008 and registered within two weeks of purchase
qualify for a Bonus PlayStation 3 as long as the customer claims one of the first 35,000 received and
validated by Sony.
Public Relations and Publicity
Public relations is a broad set of communication activities employed to create and maintain favourable
relationship with employees, shareholders, suppliers, media, educators, potential investors, financial
institutions government agencies and officials and society in general. Through its website, Sony
Corporation has its provided contacts for those customers who will be in need of any information from
the company. In this way Sony can create a mutual relationship with its customers and ensure that it
serves the wished and demand of its customers.

13
14
18
"Introducing Be Moved as the new companies strapline." MarketingMagazine.co.uk. Retrieved on 4 January 2016.
"Promotion." Sony Group. Retrieved on 4 January 2016.
Sponsoring
Sony was sponsoring huge sport-events, such as the World cup in Brazil in 2014 and other FIFA related
football events, as Sony is a FIFA-partner. At the end of 2014 Sony stopped sponsoring FIFA in response
to growing concerns about the transparency of the bid procedure around the World Cups of 2018 and
2022.
Sony has a partnership with The Olympic Games. The next event will take place in Brazil in 2016.
Process15
The companys focus on tis research and development (R&D) activities is evident in its expenditure of
over $5 billion in 2009. The strong focus on R&D helped the company to launch technologically
innovative product in the market. The strong focus on R&D would thus enable the group to revive its
product base as needs are indicated by customers. Examples of this strategy include the introduction of
BRAVIA, Cyber-shot cameras and the Xperia smartphone and tablet series.
Sony operates from a philosophy it labels uniquely Sony. The company seeks to facilitate the
development of its staff but spurs employees to manage their own career and but to avoid
pigeonholing. This is a microcosm of the companys desire to foster adaptability. The companys broad
outlook extends to its corporate responsibility.
The desire to make its hardware and interfaces that are easy to use was a catalyst behind recent
reorganization of electronics into Personal and Home category user-friendlier. Sony has adopted a
Company of Committees governance system in order to go beyond minimum compliance with legal
requirements and to add additional transparency. To accomplish this, the company has revised some
Directors functions to facilitate the proper functions of statutory committees.
Sony has recently reorganized in order to further improve responsiveness and Customer Services, Inc.
and has initiated special employee training to enhance its ability to respond to customers inquiries and
request. Sony seeks to in still corporate social responsibility policies throughout its supply chain.
People
Kazuo Hirai is the Chairman, CEO and President of Sony Corporation. He stands at the head of a more
than 130.000 employees-company.
In 2008, the company created 13 global talent directors who are assigned to identify promising
individuals in all businesses and regions and develop them into future business leaders. This initiative
also includes a schedule of job assignments designed to give them exposure to a variety of businesses
and regions16.

15
16
"Process" Marketingteacher.co.uk. Retrieved on 4 January 2016.

"People" Marketingteacher.co.uk. Retrieved on 4 January 2016.
20
2
PRE-FILTER
ANALYSIS
22
2. PRE-FILTER ANALYSIS
On April 1, 2012, under the leadership of President and CEO Kazuo Hirai, Sony announced One Sony:
an integrated new management approach designed to accelerate decision making across the entire
Sony Group. The new approach marks the beginning of a transformation aimed at driving growth and
creating new value. This section provides an overview of the five key initiatives Sony is undertaking to
revitalize and faster growth in the electronics business.
Alongside internal changes, Sony asked us to update their country selection to discover new main
emerging markets. In this first chapter 13 countries are eliminated from the list of 23 possible markets
with help of the Country Selection Model. In this section the following question will be answered: Which
13 countries will be eliminated of the list of potential interesting markets? The applied filter criteria are:
Import Restrictions, Distance in KM, World Risk Index, Travel Advice, Import Duties, Sales Tax and the
Gross Domestic Product, Purchasing Power Parity.
We start this chapter with a brief explanation of the Country Selection Model. This elucidation wont be
repeated in the following two chapters.
2.1 The Country Selection Model

The Country Selection Model is a three-phase filter-model. In every phase of the model, a number of
countries are eliminated from the list of potential emerging markets. Finally four potential lucrative and
thereby emerging markets are left over. In this chapter the first stage of this model will be worked out.
To create a new ranking in the list of 23 countries and eliminate 10 countries in the first phase and
another nine in the second, a weight is provided to every filter criteria. The weight determines in what
degree the found data will count. Do this for all the criteria and multiply this with the ranking number to
create a weighted score. For every filter criteria the interval borders of the rankings have to be defined:
from one (lowest score possible) to five (highest score possible). The weighted score and the new
ranking are a result of the weight multiplied with the score awarded to the filter criterion. The overall,
weighted scores of the countries could be compared now. The comprehensive list of criteria with
corresponding weights and rankings can be found in Annex I The country selection model explained
on page 93.
2.2 The Pre-filter analysis

Pre-filter Analysis: the criteria
To separate the wheat from the chaff, this first phase of the Country Selection Model is carried out. The
detailed elaboration can be found in Annex II Pre-filter analysis: the criteria on page 94. In this
paragraph short description and motivation of the chosen filter criteria:
Import restrictions (weight 0,15)
Distance in KM (weight 0,05)
World Risk Index (weight 0,25)
Travel advice (weight 0,20)
Import duties & Sales tax (weight 0,20)
Gross Domestic Product, Purchasing Power Parity (weight 0,15)
Restrictions on imports generally take two forms: tariffs and quantitative (non-tariff) barriers. These
restrictive measures are imposed by for example the European Union and with a lot of measurements
a country might acquire the sanction country or high-risk-country status. The consequence of
violating the rules by doing business with a sanction country could result in high amount fines. In
addition, it is still questionable whether you as a company want to do business with a country where
human rights are infringed. Secondly, the World Risk Index is a list of countries, ranked on the risk of
becoming a victim of a disaster as a result of vulnerability and natural hazards such as earthquakes,
storms and floods. A high risk also means an increased risk of higher costs due to damage. This is also
applicable to the travel advice: the Dutch government provides for every country a travel advice for its
residents. An unfavourable recommendation may have to do with the political situation in the country,
but also with the risk of natural disasters.
Thirdly, sales tax and import taxes are important because it indirectly increases the cost of each product,
or reduce the margin on a product. At a higher selling price its likely that there are fewer candidates for
the product. In both cases, high taxes will thus go at the expense of the Sonys profits. The same applies
for the distance to be covered between the production location and potential sale location. The bigger
the distance, the higher the costs will be.
Last but not least an economic factor: the Gross Domestic Product, Purchasing Power Parity. The GDP
PPP conversion factor is the number of units of a countrys currency required to buy the same amounts
of goods and services in the domestic market as US Dollar would buy in the United States. A higher GDP
PPP might indicate greater spending power.
Pre-filter Analysis: the elaboration
This section summarizes the findings from the first phase of the Country Selection Model, the Pre-filter
analysis. Full data from the study and a complete overview per country can be found in Annex III Prefilter analysis: full data starting on page 97. This section mainly includes interesting facts and figures
plus supporting graphs and tables. As explained previously, the final ranking is calculated according to
the scores given in the Country Selection Model.
Import restrictions
China is a sanction country, but nevertheless this
doesnt form a threat for Sony since it concerns an
embargo on arms. In Russia, on the other hand, a
whole lot import restrictions are in force, including
an embargo on dual-use goods and technology (if
intended for military use and certain persons,
entities and technology). This measurement will
probably apply to Sony Corporation, as Sony offers
a wide range of technology products. The same
thing goes up for Belarus, which is also a sanction
country. Another country in which it applies is
Ukraine, where there is an embargo on dual-use
goods and technology, telecommunications and
more in force.
Indonesia is considered a high-risk country in
connection with the possible violation of human
rights. The same goes for India and Pakistan. In addition to the violation of human rights, a less wellregulated legislation may occur. Therefore doing business in this country entails a greater risk.
24
Egypt is a sanction country and a high-risk country. An important restrictive measure that is applied to
Egypt is the freezing of funds and economic resources. This import restriction wont probably apply to
Sony products, but it might form a restriction because it influences the overall welfare of the country.
Countries like Iran and Iraq are in state of war. These countries are both are a sanction country and a
high-risk country. Powerful measurements are the freezing of funds and economic resources which
might lead to sober times and the embargo on telecommunications and other technological
equipment.
Distance in KM
Hindsight the distance in kilometres has proved to be a less good research factor. True enough this
factor affects the final costs of transportation, but since Sony has an efficient global distribution network
the actual distance in kilometres requires at most an increase in the quantities shipped. After all, the
extension of the market share in the concerning country doesnt call for a specific extension of the
distribution network for this country. Therefore, a low weight is assigned to the degree of importance of
this research factor. Countries that have the lowest score within the country selection model (score one)
are the following: Argentina, Brazil, Chile and Uruguay. Countries for which just a small distance
should be covered are China, Russia, India, Indonesia, Malaysia, Pakistan and Vietnam.
World Risk Index
Countries where the risk is at its highest to become a victim of a disaster as a result of vulnerability and
natural hazards are Chile with 11,20% and Vietnam with 12,89%. Other countries in which there is also a
high risk of becoming a victim are Nigeria with 8,12% and South Africa with 7,43%.
Ironically enough, countries, which are determined as the safest, following the WRI are almost all
countries where other compelling factors were discovered: Belarus, Poland, Ukraine and Egypt.
Import duties & Sales tax

A high percentage of taxes mean high fixed costs for Sony Corporation. This affects the profit of the
company. Countries, which charge a high amount of taxes, are Argentina with 16% import duties and
21% sales tax and its practically neighbouring country Brazil also likes to charge taxes. Unfortunately we
only know they charge 16% import duties and a varying amount of sales tax. Nevertheless, Brazil is
assessed with an average score in contrast to Argentina, which is assessed with the lowest score
possible. Also Uruguay is being reviewed as one of the least attractive countries in regarding taxes to
be paid.
Pakistan is ranked on the second level. This country charges a considerable amount to import duties as
well as a varying amount for each imported product. This therefore ensures higher fixed costs per
product and reduces the margin on it. Iran is also ranked on the second level. This country is charging
both import duties and sales tax. The same goes for Nigeria, in where for both sales- and import duties
a 5% fee is charged.
Iraq and Egypt are assessed with the lowest ranking possible. Of these two countries, the charges tax
amounts are unknown. This doesnt allow Sony Corporation to estimate final costs and therefore isnt an
interesting country to do business with.
Despite the fact that paying taxes is never nice, there is one country that has received the highest score
(rank five): Malaysia. In this country only 6% sales tax is charges and no import duties.
Gross Domestic Product, Purchasing Power Parity

In order to obtain a good impression of the level of prosperity in a country you can look at the GDP PPP.
India is ranked as one of the four lowest scoring countries, with $5.800. The same goes for Pakistan
with only $4.700 and Vietnam with $5.700. Nigeria also doesnt form an interesting market with a GDP
PPP of only $6.100.
Countries with a low GDP PPP that are ranked on level two are Egypt ($10.900), Indonesia ($10.700)
and Ukraine ($8.700).
The highest scoring countries in other words with a high GDP PPP are Argentina with $23.100, Chile
with also $23.100, Poland with $25.200 and Russia with $24.400. Hungary has a GDP PPP of $25.000
and Malaysia $25.100.
Pre-filter Analysis: to proceed or not to proceed
The last section of this chapter focuses on the conclusion of the pre-filter analysis. The complete prefilter analysis in Excel format can be found in Annex IV Pre-filter analysis Excel on page 108.
The table below shows the total scores in the pre-filter analysis of the country selection model. As stated
in the legend, each colour stands for a separate filter criteria. The size of this area reflects the degree of
impact on the final score. The rods also show the individual scores for each criterion in each country.
This table can also be found in Annex V Overall rankings pre-filter analysis on page 109.
26
The ten highest-scores nations go through to the next stage: the rough scan. This partition is also
displayed in the table above. The most decisive factors for this review have to do with the following
points:
1. Poland: low score on the World Risk Index, only 3,27% risk & and high GDP PPP of $25.200. The
absence of import restrictions is also benefit the country.
2. Hungary: the country with a positive score of three or higher on all criteria. Remarkably is the
relatively high sales tax of 27%, while the country doesnt charge import taxes. There is no
question of import restrictions and its high GDP PPP of $25.000 characterizes this country in a
positive way.
3. Malaysia: One on almost all criteria, high-scoring country is Malaysia. For example, the relatively
short distance from the production location is positive and the fact that the country only charges
6% sales tax. There are no import duties charged because of the Free Trade Agreement (FTA)
with Japan since 2006. The country also has a significant high GDP PPP in comparison to other
surveyed Asian countries. Also, there doesnt apply import restrictions to this country.
4. Turkey: Yet another average positive scoring country is Turkey. There are no outstanding issues.
5. Belarus: The assessment of Belarus is negatively influenced by the fact that this country is a
sanction country. By contrast, it does have al low score on the World Risk Index with only 3,07%.
In this country a ban on technology products is applied, which makes it directly a non-interesting
country to do business with.
6. Brazil: This moderately high scoring country except one: the distance that must be covered is
characterized by an on the product depending sales tax. This makes it treacherous difficult to
estimate the final costs per product. Also, there doesnt apply import restrictions to this country.
7. Uruguay: Firstly, the distance of Japan negatively impacts the final score of this country. Secondly
this country charges both moderately high import duties and sales tax.
8. China: The assessment of China is negatively influenced by the fact that this country is a sanction
country. By contrast, the country charges only 17% sales tax and no import duties. In addition,
this country is very close to Japan and a lot of the products are manufactured in China which
reduces the distribution costs.
9. Mexico: Another moderately high scoring country is Mexico. With a ranking of three or higher,
especially the relatively low sales tax of 16% and no import taxes is noticeable. Unfortunately the
distance to be covered, affects the ranking negatively.
10. Russia: The assessment of Russia is negatively influenced by the fact that this country is a sanction
country. In this country a ban on technology products is applied, which makes it directly a noninteresting country to do business with.
Based on these scores the following top ten with accompanying final score is created:
28
ROUGH SCAN
30
3. ROUGH SCAN
The second phase of the Country Selection Model elaborates on the remaining ten countries. For an
explanation of the Country Selection Model, please read the first paragraph of chapter two on page 23.
In this section the countries Poland, Hungary, Malaysia, Turkey, Belarus, Brazil, Uruguay, China, Mexico
and Russia are subjected to in-depth research.
3.1 The Rough Scan

Rough Scan: the criteria
In order to obtain more depth in the
investigation this phase of the country selection
model is conducted. The detailed elaboration
can be found in Annex VI Rough Scan Criteria
on P110. In this paragraph short description
and motivation of the chosen filter criteria:
Political Stability Index (weight 0,15)
Trade relations (weight 0,20)
Gross National Income, Purchasing
Power Parity per capita in USD
(weight 0,10)
Inflation rate (weight 0,20)
Size of the population (weight 0,20)
Exports in million USD (weight 0,05)
Exchange rates yearly in percentages
(weight 0,10)
A destabilized government, poor quality of public and civil formulation and implementation is
something you want to avoid in a time of market expansion for exactly that country. The Political Stability
Index is a sub pillar of the Global Innovation Index and represents the chance one of the above
mentioned risks might occur. Another reason why a politically stable environment is important is the
relation between Japan and the other country. A good relationship means basically a stronger bond
between the two countries and it can also imply other favourable conditions - such as a Free Trade
Agreement - which increases mutual trade. Exports play an important role in the economy, influencing
the level of economic growth, employment and the balance of payments. For example, globalisation
and reduced tariff barriers have all helped exports become a bigger share of the national income.
Secondly, the GNI PPP per Capita in USD is the GNI converted to national dollars using purchasing
power parity rates. It is a suitable criterion to determine whether there is sufficient capital available in the
emerging market you are about to enter. Nevertheless there are many ways to measure the size and
performance of an economy, including the growth or contraction of exchange rates and the inflation
rate of a country. Many governments have a target for a low but positive rate of inflation: a high inflation
could have damaging economic and social consequences, such as a tough financial situation for
businesses. Aside from factors as the GNI PPP and inflation, the exchange rate is one of the most
important determinants of a countrys relative level of economic health which, in turn, is important in
determining whether it is an interesting market or not.
The last criteria chosen is the size of the population. This is in fact equal to the size of the market and
thus potential buyers of the Sony Products. The smaller the population, the smaller the new market is.
Rough Scan: the elaboration
This section summarizes the findings from the second phase of the Country Selection Model, the Rough
Scan. Full data from the study and a complete overview per country can be found in Annex VII Rough
Scan: full data on page 113. This section predominantly includes interesting facts and figures plus
supporting graphs and tables. As explained previously, the final ranking is calculated according to the
scores given in the Country Selection Model.
Political Stability Index

Countries that are rated lowest (level two) are Belarus (29%), Russia (26%) and Turkey (38%). Countries
such as dropped out countries Iran and Iraq would be assessed on level one because these countries
are in state of war. Since we are just looking for a new emerging market, it was expected that none of the
countries would receive the highest score (level five). This is the case for among others Japan, Sweden
and the USA. The highest scoring countries are Uruguay (70%), Poland (76%), Hungary (74%) and
Malaysia (71%).
Trade relations
Earlier in this chapter is explained that a good relationship between countries entails meaningful mutual
benefits. The only country that is assessed on level one is Russia. The countries havent been able to
sign a peace treaty after WWII due to the Kuril Islands dispute. As of 2015 matters remain unsolved and
these disputes have effectively soured relations between the two countries. This allows us to say that
Russia is by definition not a suitable new market for expansion.
On the other hand, some countries have a very tight relationship. For instance, Japan has a very strong
relationship with Brazil and Mexico. The relationship between Japan and Brazil goes back to 1895
when the first diplomatic relations were established. More Japanese immigrants are found in Brazil than
in any other country, which is in favour of Sony. This enables a Japanese brand to be more easily
accepted. Sony has also sponsored several major events in Brazil, causing that the estimated brand
recognition will be high. The Free Trade Agreement between Japan and Mexico is in favour of this
country. Since then the trade between the two nations increased dramatically up to $20 billion USD.
Gross National Income, Purchasing Power Parity per capita in USD

Basically all the countries scored three or higher out of five. This means a minimum GNI PPP per capita
of $10.001 per citizen. This reflects to the level of welfare in a country. The two lowest scoring countries
are China with only $11.850 and Brazil with $14.750 GNI PPP per capita in USD. Highest scoring
countries are Malaysia with $22.530, Hungary with $22.800, Russia with $23.190 and Poland with
$22.790 GNI PPP per capita in USD.
Inflation rate
Practically each country left over in this part of the Country Selection Model scores a four or five out of
five. Only Belarus is ranked on level three with dramatically high inflation rate of 18,10%. Such a high
inflation rate has as a damaging economic and social effect on the economy. In contrast, some countries
stand out positively, including Mexico with 4%, Poland with 0%, Hungary with minus 0,20%, China with
2% and Malaysia with 3,10%. Only the inflation rate of Hungary should be monitored. Whether it further
decreases or remains negative for a long time, it is also not favourable for the economy. In that case
Hungarys score would drop dramatically with minus 0,80. In that case the he country would drop three
spots to the ninth place.
32
Size of the population

The size of the population actually represents the potential market. Therefore, the larger the potential
market, the greater the chances of success in the market. Countries with a relatively small population
and which are therewith negatively evaluated are Uruguay with 3,34 million, Belarus with 9,58 million
and Hungary with 9,89 million residents. The biggest potentials markets that have been assessed with
the highest score is what else China with 1 billion 367 million inhabitants and Brazil with 204,25
million citizens. These two countries are based on the size of the population the most interesting new
markets to entry.
Exports in million USD
Despite this is the least influential factor in the Rough Scan, export is important to estimate the extent in
which countries trade with other countries. Countries, which score lowest, are Uruguay with only an
actual amount of $10,38 million USD yearly and Belarus with $35,74 million USD yearly. The third lowest
performing country within this filter criterion is Hungary with $100 million. This is already a clear
difference with the aforementioned countries. Countries that export a high amount of products every
year have been rewarded with the highest score. These countries are China by as much as $2 billion and
$343 million and Russia with $497,8 million.
Replenishment
An important caveat here is that this is the total amount and the size of the population of that country
hasnt taken into account. A simple calculation took place: the total amount of export divided by the size
of the population. How much USD per citizen is exported every year? This calculation is only shown in
the Excel overview of the Country Selection Model and is not used as selection criterion in the model
because all calculations were already made. Luckily this factor is not heavily counted.
It is striking that after these calculations were done, Hungary which originally placed second lowest of
the three, now becomes first with $10.103 USD per resident. Malaysia, which was assessed moderately,
now scores on the second place with $7.370 USD per resident. On the other hand, number one scoring
country China turns out to be not that special because the export for only $1.713 per citizen. In this
calculation, Brazil scores lowest with only $1.100 per inhabitant.
Again, this calculation is therefore not included in the final assessment in the Country Selection Model. It
will only be kept in mind when there must be made a definite choice for the new export market.

Seen the fact that exchange rates play a vital role in countrys level of trade which is critical to almost
every free market economy in the world exchange rates are among the most watched, analysed and
governmentally manipulated economic measures. Volatile exchange rates (which changes dramatically
in the previous year) can have a serious impact on operating profit. In general we can say that the more
stable the exchange rate, the better it is for profitability. The highest scoring country of all ten is China
with a discrepancy of only 5,2%. Belarus, with a whopping exchange rate volatility of 67%, scored as
only country a score of one out of five. Brazil with also high exchange rate volatility scored three out of
five, with 44,1%. Every other country scores four out of five, so moderately good with an exchange rate
between 15 and 30%.
Rough Scan: to proceed or not to proceed
The last section of this chapter focuses on the conclusion of the rough scan. The complete rough scan in
Excel format can be found in Annex VIII Rough Scan Excel on page 119.
The table on the next page shows the total scores in the Rough Scan of the country selection model. As
stated in the legend, each colour stands for a separate filter criteria. The size of this area reflects the
degree of impact on the final score. The rods also show the individual scores for each criterion in each
country. This table can also be found in Annex IX Overall rankings Rough Scan on page 120.
The four highest-scores nations go through to the final stage: the detailed survey. This partition is also
shown in the table above. The most decisive factors for this survey have to do with the following points:
1. China
With a tremendously large population of 1 billion and 367 million people this is one of the largest
countries in the world. Despite that this country exports for over $2 billion $343 million of
products every year, this means only $1.713 per resident of China. This country has also a
relatively low GNI PPP per capita in USD, in fact its solely $11.850 per citizen. Something, which is
in favour for this country, is the very low inflation rate of 2%.
2. Mexico
A high-performing country, with no particular remarks: Mexico. Something very positive has been
the age-old strong relationship with Japan and the low inflation rate of 4%.
34
3. Brazil
A country that seems very promising at first sight. Nevertheless the Gross National Income,
Purchasing Power Parity is only $14.750 per resident and the country exports for only $1100 per
person. Although the population size of Brazil is in favour of the country, this country suffers from
an extremely high exchange rate volatility of 44,1%.
4. Malaysia
For the second time in a row the country with only positive remarks. The political stability is
assessed with 71% and the GNI PPP per Capita is very high, with $22.530. This is the highest
amount of all surveyed countries in Asia. Another fact which is in favour of the country is the low
inflation rate of only 3,1%. Despite that Malaysia scores average on the country selection model
when it comes to export, we must keep in mind that Malaysia exports for more than five times
more than China in USD every year! Malaysia exports for $10.103 per resident every year to other
countries in comparison to China, which exports for only $1.713.
When this calculation was used in the calculation, Chinas score would drop with minus 0,20 up
to 3,90 and Malaysias score would increase with 0,20 to a final score of 4,05. Actually it means
that both countries would change places in the ranking.
Based on these scores the following top four with accompanying final score is created:
36
4
DETAILED
SURVEY
38
4. DETAILED SURVEY
The final phase of the Country Selection Model is the detailed survey. This phase elaborates on the
remaining four countries: Malaysia, Brazil, China and Mexico. For an explanation of the Country
Selection Model, please read the first paragraph of chapter two on page 23. In this section the abovementioned countries are subjected to in-depth research. In order to reach a final recommendation, a
MABA analysis based on the Country Selection Model and a DESTEP analysis took place. In addition to
this the culture within the country is also surveyed, with help of inter alia the Six Dimensions Model of
Geert Hofstede. The
4.1 The Detailed Survey

Detailed Survey: the criteria
This is the fist step in order to determine the
most interesting emerging market for Sony
Corporation. In this phase, the remaining
countries as in previous stages are subject to
the below mentioned research criteria. For
every criterion the country will be assessed with
a score, and this score multiplied with the
weight creates the final rating. The detailed
elaboration of the criteria can be found in
Annex X Detailed Survey: the criteria on page
121. In this paragraph a short description and
motivation of the chosen filter criteria:
Consumption & Demand (weight 0,15)
Revenue Growth (weight 0,15)
Market Penetration (weight 0,20)
Average Revenue Per User (weight 0,05)
Intensity of Competition (weight 0,15)
Trade Promotions (weight 0,15)
Environmental
Performance
Index
(weight 0,15)
Consumption is normally the largest GDP
component. Therefore, many persons judge the
economic performance of the country mainly in
terms of consumption levels and dynamics.
Consumer electronics are durable and luxury
goods it can be used for many years and it is
an essential part of peoples lives. Quite bluntly:
if there is no demand for Sonys products, the
profit will also be forthcoming. This is therefore
an essential component to study.
A crucial aspect in this in the growth of the consumer electronics market as this shows that the market is
moving in a positive sense. Another thing to keep in mind is the market penetration within the consumer
electronics market. The lower the market penetration, in combination with a
high market growth, the better. Market growth may involve an increasing
demand with the current buyers, but this might also indicate a new group of potential customers coming
around. A presently low market penetration means a high market potential. Another instrument to
measure the economy is the Average Revenue growth rate per Paying User (ARPU) per year. The higher
the ARPU, the more interesting the market is for Sony.
Secondly we take a look at the competitiveness of a country with help of The Global Competitive Index.
The more competitive a country, the more likely it is that the economy will grow faster over time. Return
on investment is one of the key factors explaining the economys growth potential.
Thirdly, we look again at the trade relationship between the two countries, only now specifically whether
there are agreements to facilitate mutual trade. Think for example of a Free Trade Agreement. An FTA
not only promotes bilateral trade, it also ensures that the profit margin is optimized because there are
no taxes to be paid. When entering a new market it will take a while before one can speak of a profitable
market.
Lastly a criterion, which is very important for Sony Corporation: environmental awareness. Sony
recognizes the importance of preserving the natural environment that sustains all life on the earth for
future generations and thereby ensuring that all humanity can attain a healthy an enriched life. To this
end, it is essential that the new emerging market for Sony Corporation attaches great importance to the
environment. The Environmental Performance Index (EPI) ranks how well countries perform on highpriority environmental issues in two broad policy areas: protection of human health from environmental
harm and protection of ecosystems. This is therefore a decisive factor on what countries should achieve
the highest ranking. In other words: a minimum EPI rating of 51 and higher.
Detailed Scan: the elaboration
This section summarizes the findings from the third and final phase of the Country Selection Model, the
Detailed Survey. Full data from the study and a complete overview per country can be found in Annex XI
Detailed Survey: full data on page 124. This section predominantly includes interesting facts and
figures plus supporting graphs and tables. As explained previously, the final ranking is calculated
according to the scores given in the Country Selection Model. Since this is the last stage of the model
and there are only four countries left, each country will be discussed at every criterion.
Consumption & Demand

The lowest ranking country is Brazil, ranked on level two. The Brazilian economy is significantly
declining and the level of prosperity suffers on the economic downturn. Due to high supply and low
product demand, manufacturers were even more reliant than usual on seasonal sales periods/dates
such as Christmas and Black Friday. Given the depth of the economic recession in 2015, it is expected
that the demand for consumer electronics will remain weak in 2016 and following years. Even though
Brazil has the 7th largest economy in the world and it is a BRIC country, we must conclude that Brazil isnt
an interesting emerging market for Sony.
Mexico has struggled with the fast rising exchange rate between the Mexican peso and the US dollar.
There is a large gap between low-income and high-income households in Mexico. High-income
households are the key purchasers of high-end products, continuing to acquire consumer electronics,
while low-income households are being negatively affected by rising prices of imported products. This
disparity in income also results in a clear view of the distinct group of potential customers: the highincome households. Additionally the Mexican government is supporting low-income families to
transition to digital TV. Multinational companies have turned to Latin America, and more and more to
Mexico, in search of strong opportunities to expand their businesses.
40
The Chinese economy grew, but slowed down in 2015 in comparison to 2014. Overall consumer
electronics continued to grown, especially in new categories of wearable electronics and OLED TVs due
to their innovation and smart functions. The sales of more traditional devices on the other hand suffered
declines. Domestic manufacturers accounted for increasing shares of consumer electronics due to
improved technology and growing brand reputation. However, traditional brands gain ground and are
more frequently purchased than the non-domestic brands such as Sony.
The best performing country is Malaysia, which is ranked on the highest level. In recent years the
demand for consumer electronics products has displayed a robust growth aided by the rising
disposable income amongst consumers. Smart Consumer electronics become more important in
consumers life. There is an apparent shift of preferences towards tablets and other portable computers,
as evidenced in the number of households that own one or more laptops/tablets instead of sharing a
desktop. The core drivers in the volume growth over the forecast period will be the demand from firsttime buyers, largely from rural areas, and the population growth in the country. Meanwhile, existing
consumers are likely to purchase additional consumer electronics with their growing sophistication in
heir preferences and rising disposable income.
Revenue Growth
The lowest performing country when in comes to the revenue growth is again Brazil. The growth rate
in the consumer electronics market is only 8,4%. Malaysia is ranked on level four with a growth rate of
25,3% and China is ranked on the same level with a revenue growth of 27,3%. The difference between
these two countries and the best performing country in this category is even not that big. The highest
scoring country in this case is Mexico with the revenue growth of 28,2%.
Market Penetration
With a low market growth and a relatively high (the highest of the four remaining countries) market
penetration Brazil also scores the worst. It is ranked on level three. The three tolerably good scoring
countries on the category revenue growth, also have a lower market penetration. China is also ranked
on level three with a market penetration of 13,6%. Mexico has the highest market growth, but a higher
penetration than Malaysia with 11,6%. It is ranked on level four. The market penetration of consumer
electronics in Malaysia is 8,1%. This fact in combination with the market growth makes that Malaysia is
determined the most interesting country.
Average Revenue Per User
The higher the Average Revenue Per User (ARPU) is, the more interesting the country is for Sony
Corporation. Malaysia with an ARPU of $149,95 and Brazil with an ARPU of $155,79 score lowest this
time: both level two. Mexico is assessed on level four with the Average Revenue per Paying User (ARPU)
or $180,98. China scores highest level five with an ARPU of $197,65. This means that Chinese citizen
spend the most on consumer electronics of all four remained emerging markets.
Intensity of Competition
The intensity of competition in the four remaining emerging markets is almost identical. Mexico (4,27),
Mexico (4,34) and China (4,89) are all assessed on level four. After all, they all have a score below five
on a scale from one to seven of the Global Competitiveness Index. Malaysia received the highest
evaluation with 5,16 on a scale of seven.
Trade Promotions
A Free Trade Agreement (FTA) or an Economic Partnership Agreement (EPA) results in a higher profit
margin for Sony Corporation. Brazil is the only country with no negotiations
going on or agreements with Japan. Due to the strong relationship with Japan,
this country is assessed with score two. China does a little bit better: since a couple of years there are
negotiations going on. However, Mexico and Malaysia are both doing better because both countries
have a FTA and an EPA with Japan.
Environmental Performance Index

In the first paragraph of this section, when explaining the criteria, we already stressed that the
environmental awareness of the country is essential. Sony doesnt prefer a country that doesnt have this
subject high on its agenda. In other words a country must have a minimum Environmental Performance
Index of 51 and higher. In this case, this means that China alone cannot fulfil this condition. China
therefore drops out as a potential candidate for market expansion. The other three countries, Mexico,
Brazil and Malaysia are all scoring higher than 51. Brazil scores 52,97 out of hundred, Mexico scores
55,03 out of hundred and Malaysia scores highest with 59,31 out of hundred.
Detailed Survey: to proceed or not to proceed
The last section of this chapter focuses on the conclusion of the detailed survey. The complete detailed
survey in Excel format can be found in Annex XII Detailed Survey Excel on page 130.
The table on the next page shows the total scores in the Rough Scan of the country selection model. As
stated in the legend, each colour stands for a separate filter criteria. The size of this area reflects the
degree of impact on the final score. The rods also show the individual scores for each criterion in each
country.
42
In fact, all four counts form an interesting market for Sony Corporation. However, there are two countries
that fall of due to two different reasons. China didnt make it due to the low score on the Environmental
Performance Index of only 43 and Brazil didnt make it in connection with the poor economic conditions
and the low demand for the products. China ended last with a third score of 3,15 and Brazil ended last
with a score of 3,00 in the Country Selection Model.
During the comparison it is proved that Mexico and Sony are both interesting markets for Sony
Corporation. Malaysia has clearly the lead-position with the final score of 4,30 in the detailed survey.
Mexico follows with a respectable score of 3,95. Based on the detailed survey we would recommend
Malaysia as the new interesting market. In the next chapters all four countries will be elaborated with a
DESTEP analysis, MABA analysis and elaboration of the 6D-Model of Geert Hofstede.
44
5
MALAYSIA
46
5. MALAYSIA
This chapter provides an in-depth analysis of the country Malaysia. In this section we will look more
closely at the macro-economic factors of Malaysia through a DESTEP analysis. Also youll find in this
chapter more information about the Malaysian culture with amongst others the Six Dimensions Model of
Geert Hofstede. Last but not least the business attractiveness versus the market attractiveness is
examined in the MABA analysis.
5.1 DESTEP
The company is not alone in doing business. It is surrounds by and operates in a larger context. In this
case the delineation is the country Malaysia. To gain insight in the macro environment of the potential
market, the following six forces are surveyed: Demographic, Economic, Socio-Cultural, Technological,
Environmental and Political. The results of which will be summarized in this chapter. The complete
DESTEP analysis can be found in Annex XIII: DESTEP Malaysia on page 131.
Demographics - In July 2015 Malaysia counted more than 30,5 million citizens.
The two most represented groups within the population are 15-24 years with
16,91% (circa 5,16 million people) and 25-54 years with 41,12% (circa 12,55
million people). The number of men versus women is equally spread. The most
common ethnicities in the country are Malay and Chinese.
Economics - Malaysia, a middle-income country, has transformed itself since the
1970s form a producer of raw materials into an emerging multi-sector economy. It
is attempting to achieve high-income status by 2020 and to move farther up the
value-added production chain by attracting investments in amongst others high
technology industries and services. Current Prime Minister NAJIB is working on
the Economic Transformation Program (ETP) to boost product demand and
reduce the economys dependence on exports. Gross exports of goods and
services constitute more than 80% of the GDP.
Malaysias GDP PPP per capita in international dollars quintupled from circa $5000
in 1990 to $25.100 in 2015. At this moment the Malaysian economys development
is in transition from stage two efficiency driven to stage three innovation driven.
The economy performed together with two other emerging markets the highest
from the twenty largest emerging economies. The Philippines, Russia and Malaysia
recorded all a higher than 100 value of the Global Innovation Index.
Japan and Malaysia have a very strong relationship, which goes back to the 15th
century. Malaysia has also an Free Trade Agreement and Economic Partnership
Agreement with Malaysia, which means that there are no import duties to be paid
when importing to each other countries.
There is a growing demand for consumer electronics in Malaysia. As the economy
grows, so does the demand for luxury items too.
The overall infrastructure of Malaysia is one of the most developed countries in

Asia and the country is ranked 8th in Asia and 25th in the world. Also their
transportation network is one of the most comprehensive in Asia and covers a total
of 144,403 kilometres. They have a well-organized public transport system and
118 airports. The country is strategically located on the most important shipping
lanes in the world. Malaysia has two ports that are listed in the top 20 busiest ports
in the world.
More interesting facts about the Malaysian economy:
A relatively low inflation rate of 3,10%.
A somewhat strong exchange rate of 23,20%: this means that $1 USD is
worth $4,40 Malaysian Dollar at a particularly moment.
The GDP official exchange rate is $326,93 billion in 2014, representing 0,53
per cent of the worlds economy.
Gross National Income (GNI) per capita is $22.530.
Malaysia exports for $224.900 billion every year.
The market size for consumer electronics is $252,90 million USD. This
market is in 2015 grown with 25,3%.
The market potential in 2020 for consumer electronics is $512 million USD.
The corresponding growth rate for market potential in 2020 is 202,45%.
The Compound Annual Growth Rate for 2014-2020 is 8,5%.
The Average Revenue per Paying User per year in 2015 is $149,95 USD.
The Intensity of the Competition on a scale of seven is 5,16.
In Malaysia there are 1,86 million users of consumer electronics. The
Penetration in the Malaysian market is 8,10%.
Social & Cultural Malaysia is a multi-cultural society. The Malay language is an
Austronesian language spoken not only by Malaysians but all Malay people who
reside in the Malay Peninsula, southern Thailand, the Philippines and more. The
main ethnic groups are the native Malays as well as large populations of Chinese
and Indians. When visiting the country it is clear that the ethnicities retain their
religions, customs and way of life. The most important festivals of each group are
public holidays, which makes Malaysia the country with the most public holidays in
the world. The country is predominantly Islamic in its religion but its only the
Malay Muslims who are bound by Islamic laws. The rest of the population is free to
practise their own religions.
Family is considered the centre of the social structure. As a result there is a great
emphasis on unity, loyalty and respect for the elderly. The family is the place where
individuals can be guaranteed both emotional and financial support. Malays,
Chinese and Indians all strive to maintain face and avoid shame both in public and
private. Face is a personal concept that embraces qualities such as a good name,
good character, and being held in esteem by ones peers. The desire to maintain
face makes Malaysians strive for harmonious relationships. Face can be lost by
openly criticizing, insulting, or putting someone on the spot; doing is done in
public; showing anger at another person; refusing a request; not keeping a
promise or disagreeing with someone in publicity.
48
Popular media reinforce the idea of consumerism as a lifestyle and carry the
advertising meant to draw consumers to products and services. Rising freedom
gives people more economic and social room to engage in consumer lifestyle. At
the same time, the new choices available in consumerist societies let people
express their social freedom as they buy products that help define and
differentiate them from their fellow citizens.
Technological Although IT is now well and truly a global industry, each
individual region and country reacts to international influences in its own way. One
of the most notable trends that Malaysian businesses are focusing on is the
Internet of Things (IoT), which, according to Cisco, involves connecting people and
devices at a level that previous generations would have considered impossible.
This allows for more mobile workforce, with a staff no longer restrained by their
physical workstation. High-speed Internet, a reliable cloud-computing service and
the newest technologies are essential to make this work.
Information technology primarily the Internet has become increasingly
important to consumerism in recent years. Think of E-commerce, collaborative
filtering, eBay and product research as a few of the innovations.
The number of people buying smartphones has increased to 7.8 million in January
2013. Broadband penetration in Malaysia increased from 55,6% in 2010 to 66% in
2012.
Ecological & Environmental - Malaysia is ranked pretty well on the Environmental
Performance Index with their score of 59,31 out of 100. Nevertheless this still
means there is a lot of room for improvement. At this time, Malaysia suffers from air
pollution from industrial and vehicular emissions, water pollution from raw sewage,
deforestation and smoke/haze from Indonesian forest fires. This last point is also
for Malaysia difficult to influence.
Malaysia is a relatively safe country. The World Risk Index has assessed Malaysia
with 6,44% risk of becoming victim of a natural hazard.
Political & Legal Malaysia is the only federation in Southeast Asia. The system of
government is closely modelled on that of the Westminster parliamentary system,
a legacy of British colonial rule. The head of the country is referred to as the King.
The Political Stability Index is assessing Malaysia with 71% political stability. The
country is multi-ethnic and multi-cultural, which plays a large role in politics. The
constitution declares Islam the state religion while allowing freedom of religion to
non-Muslims.
Since 2004 Malaysia and Japan have a Free Trade Agreement and Economic
Partnership Agreement. This means no import duties must be paid when
importing to each other countries.
The Malaysian Government is the driver in the consumption trend. It is focussing
on green growth and high level of prosperity.
5.2 Six Dimensions Model

Professor Geert Hofstede conducted one of the most comprehensive studies of how values in the
workplace are influences by culture. He defines culture as the collective programming of the mind
distinguishing the members of one group or category of people from others. The six dimensions of
national culture are based on extensive research. The model consists of the following dimensions:
Power Distance Index (PDI)
Individualism versus Collectivism (IDV)
Masculinity versus Femininity (MAS)
Uncertainty Avoidance Index (UAI)
Long Term Orientation versus Short Term Normative Orientation (LTO)
Indulgence versus Restraint (IND)
For a complete overview of the Six Dimensions model for Malaysia, I would like to refer to Annex XVII 6D
Model & Country specified cultural habits starting on page 170. This last part wont be a part of this
chapter and is only added to provide more insight into the business culture of the country.
M alaysias Six Dim ensions
If we explore the Malaysian culture through the
lens of the 6-D Model of Geert Hofstede, we can
get a good overview of the deep drivers of
Malaysian culture relative to other world cultures.
Power Distance (100)
This dimension deals with the fact that all
individuals in societies are not equal it
expresses the attitude of the culture towards
these inequalities amongst us. Malaysia scores
very high on this dimension (score of 100) which
means that people accept a hierarchical order in
which everybody has a place and which needs to
further justification. Hierarchy in an organisation
is seen as reflecting inherent inequalities,
centralization is popular, subordinates expect to
be told what to do and the ideal boss is a
benevolent
autocrat.
Challenges
to
the
leadership are not received well.
Individualism (26)
The fundamental issue addresses by this dimension is the degree of interdependence a society
maintains among its members. Malaysia, with a score of 26 is a collectivistic society. This is manifest in a
close long-term commitment to the member group, be that a family, extended family of extended
relationships. Loyalty in a collectivist culture is paramount and overrides most other societal rules and
regulations. Such a society fosters strong relationships, where everyone takes responsibility for fellow
members of their group. In collectivistic societies, offence leads to shame and loss of face.
Employer/employee relationships are perceived in moral terms (like a family link); hiring and promotion
take account of the employees in-group. Management is the management of groups.
50
Masculinity (50)
A high score (masculine) on this dimension indicates that the society will be driven by competition,
achievement and success, with success being defined by the winner/best in field a value system that
starts in school and continues throughout organizational life. A low score (feminine) on the dimension
means that the dominant values in society are caring for others and quality of life. A Feminine society is
one where quality of life is the sign of success and standing out from the crowd is not admirable. With an
intermediate score of 50, a preference for this dimension cannot be determined.
Uncertainty Avoidance (36)
The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the
future can never be known: should we try to control the future or just let it happen? This ambiguity
brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways.
Malaysia scores 36 on this dimension and thus has a low preference for avoiding uncertainty. Low UAI
societies maintain a more relaxed attitude in which practice counts more than principles and deviance
from the norm is more easily tolerated. In societies exhibiting low UAI, people believe there should be
no more rules than are necessary and if they are ambiguous or do not work, they should be abolished or
changed. Schedules are flexible, hard work is undertaken when necessary but not for its own sake.
Precision and punctuality do not come naturally and innovation is not seen as threatening.
Long Term Orientation (41)
This dimension describes how every society has to maintain some links with its own past while dealing
with the challenges of the present and future, and societies prioritize these two existential goals
differently. The low score of 41 in this dimension means that Malaysia has a normative culture. People in
such societies have a strong concern with establishing the absolute truth; they are normative in their
thinking. They exhibit great respect for traditions, a relatively small propensity to save for the future, and
a focus on achieving quick results.
Indulgence (57)
This dimension is defined as the extent to which people try to control their
desires and impulses, based on the way they were raised. Relatively weak
control is called Indulgence and relatively strong control is called
Restraint. Malaysia's high score of 57 indicates that the culture is one of
Indulgence. People in societies classified by a high score in indulgence
generally exhibit a willingness to realize their impulses and desires with
regard to enjoying life and having fun. They possess a positive attitude and
have a tendency towards optimism. In addition, they place a higher degree
of importance on leisure time, act as they please and spend money as they
wish.
5.3 MABA analysis

The MABA analysis stands for Market Attractiveness Business Attractiveness. This analysis also compares
product groups with respect to market attractiveness and competitive power. Determining what factors make a
market attractive and what are product and/or service strengths can be difficult to pin down. Any assessment of
market attractiveness and business attractiveness is necessarily subjective, since the final score is dependent on
the chosen mark and the weight of the selected criteria. The elaboration of the MABA filter criteria is added in
Annex XVIII MABA Filter Criteria on page 182.
Since the MABA analysis is the result of findings from the Country Selection Model and DESTEP analysis, the MABA
analysis wont be elaborated in detail. This chapter includes the final positioning of Malaysia in the MABA matrix
and the possible consequences thereof.
MABA of Malaysia
In Annex XIX MABA Complete
Excel on page 182 the complete
elaboration is added. The size of
the pie chart is based on the
relative size of the market
compared to other countries. The
slice of pie stands for the market
share within the market of
consumer
electronics
within
Malaysia: 4,9% or $12,4 million
USD. Malaysia is located in the part
of the MABA analysis which
correspondent with the strategy to
invest for growth.
The total business assessment
score for Malaysia is 3,30. It is the
country with the smallest market
and a relatively small market share;
the score thereby is negatively
affected.
Due
to
the
high
market
attractiveness (score 4,20), Malaysia
is positioned high on the vertical
axis. Market growth, intensity of
competition, consumption and
demand, EPI, penetration on the
consumer electronics market and
the market potential are all factors in which the country ranks high on.
The final conclusion can be found in the last chapter. After the MABA analysis is elaborated per country in each
country-specific chapter, chapter nine is about the designation of the final export market and the new export
strategy.
52
6
MEXICO
54
6. MEXICO
This chapter provides an in-depth analysis of the country Mexico. In this section we will look more
closely at the macro-economic factors of Mexico through a DESTEP analysis. Also youll find in this
chapter more information about the Mexican culture with amongst others the Six Dimensions Model of
Geert Hofstede. Last but not least the business attractiveness versus the market attractiveness is
examined in the MABA analysis.
6.1 DESTEP
case the delineation is the country Mexico. To gain insight in the macro environment of the potential
DESTEP analysis can be found in Annex XIV: DESTEP Mexico on page 140.
Demographics - In July 2015 Mexico counted more than 121,7 million citizens.
The two most represented groups within the population are 0-14 years with
27,59% (circa 33,59 million people), 25-54 years with 17,90% (circa 21,8 million
people) and 25-54 years with 40,55% (circa 49,36 million people). There are a few
less men than women. The most common ethnicities in the country are Mestizo
(62%) and Amerindian (21%).
Economics Mexicos $1.3 trillion economy has become increasingly oriented
toward manufacturing in the 21 years since the North American Free Trade
Agreement (NAFRA) entered into force. The largest trading partner is the United
States. The income distribution in Mexico is highly unequal. In other words: there is
a huge difference between rich and poor.
Although the economy is expected to experience stronger growth in the following
years as a result of investment and stronger demand for Mexican exports, growth
is predicted to remain below potential for reasons of inefficiencies and corruption.
Over the medium-term, the economy is vulnerable to global economic pressures,
such as lower external demand, rising interest rates and low oil prices
approximately 30% of government revenue comes from the state-owned oil
company PEMEX.
Mexicos GDP PPP per capita in international dollars has shown an on-going
increase since 1990: from roughly $7500 in 1990 to $18000 in 2015. Mexico is
seen as one of the twenty largest emerging economies which together account
for 27% of global GDP. Unfortunately Mexico rates below 100 at all pillars of the
Global Competitiveness Index (GCI). It is noticeable that healthcare and primary
education is seen as advantage for Mexico, as well as the market size.
Japan and Mexico have a good strong relationship and have Free Trade
Agreement. This means that there are no import duties to be paid when importing
to each other countries.
There is a growing demand for consumer electronics in Mexico. As the economy

grows, so does the demand for luxury items too. The Mexican economy struggled
with the fast rising exchange rate between the Mexican Peso and US Dollar. The
economic situation of wealthy households improves and poorer households
situation declines.
The strength of the competition in several categories among them consumer
electronics has negatively impacted the prices. The launch of innovative luxury
devices was supported by a strategy of high-quality devices at affordable prices.
This forces other competitors to lower their prices in order to maintain their
company/brand shares.
More interesting facts about the Mexican economy:
A relatively low inflation rate of 4%.
A somewhat strong exchange rate of 17%.
The GDP official exchange rate is $1.291 trillion in 2014, slightly lower than
previous years (-2,1%).
Mexico exports for $398,3 billion every year and is the 15th largest export
country in the world.
The Mexican Average Revenue per Paying User (ARPU) per year in USD for
2015 is $180,98.
The penetration of consumer electronics with more than 10,58 million users
in the Mexican market is 11,6%.
The market size for consumer electronics is $1.648,6 million USD. This
The market potential in 2020 for consumer electronics is $3.135 million
USD. The corresponding growth rate for market potential in Mexico in 2020
is 190,16%
The Compound Average Growth Rate (CAGR) from 2014-2020 is 13%.
Social & Cultural Mexico has made tremendous progress over the last decade in
terms of improving the quality of life of its citizens, especially in the areas of
educations, health and jobs. Notwithstanding, Mexico performs well in only a few
measures of well being relative to most other countries in the Better Life Index.
Money, while it cannot buy happiness, is an important means to achieving higher
living standards in Mexico. The average household net-adjusted income per capita
is $13.085 a year, less than the OECD average of USD $25.908.
Nearly 61% of people aged 15 to 64 years in Mexico have a paid job, lower than
the OECD employment average of 65%. Some 78% of men are in paid work,
compared with 45% of women. Good education skills are important requisites for
finding a job.
In general, Mexicans are more satisfied with their lives than the OECD average.
When asked to rate their general satisfaction with life on a scale from 0 to 10,
Mexicans gave it a 6.7 grade, slightly higher than the OECD average of 6.6. In
Mexican society the family is at the centre of the social structure and is very
important. Mexicans consider it their duty and responsibility to help family
56
members. Families are very traditional, with the father as the head, the authority
figure and decision-maker. Mothers are greatly revered, but their role may be seen
as secondary to that of their husband. Also, the Mexican society and businesses
are highly stratified and vertically structured. They emphasize hierarchal
relationships.
Social Media Trends:
The average time spend on the Internet each day is 5 hours and 22
minutes. Social media dominates time Mexicans spend online.
96% of all Millennials are active on at least one social media channel.
Smartphone penetration has reached only 57% of Millennials; meaning
desktop based is still very much alive.
Mexico is one of the most active countries on Twitter. Facebook is the most
popular with 95,6% of the Internet users stating it is their preferred form of
social media.
Lots of Mexican shop online in US websites because of the lower prices.
Social media may also prove to be the key to boosting Mexican ecommerce.
Technological The Mexican government announced that the target of 100.000
free Internet hotspots is set to surpass by the end of this year. 26% of all Mexican
households reported that hey had access to the Internet. Per 100 inhabitants 42.5
people have a wireless mobile broadband subscription.
In 2012 the ambitious project to construct a creative digital city was announced. In
2014 they began building the CDC. The goal of this project is to create a worldclass hub of digital media development.
Android is the most popular smartphone operating system in Mexico, with 85,2%
of all smartphones (January 2015).
Ecological & Environmental - Mexico is ranked well on the Environmental
means there is a lot of room for improvement. At this time, Mexico suffers from
among other things serious air and water pollution in urban areas, deforestation
and desertification.
Mexico is a relatively safe country. The World Risk Index has assessed Mexico with
6,23% risk of becoming victim of a natural hazard. Nevertheless, there are limited
safety restrictions active in large parts of Mexico. Hurricanes damages Mexicos
infrastructure in some parts of the country and there is a lot criminality.
Political & Legal There is an existing chance that the Mexican government will
destabilize. The Global Innovation Index assesses the country with 46% political
stability.
Since 2005 Mexico and Japan have a Free Trade Agreement This means no import
duties must be paid when importing to each other countries. Both countries have
been working on a strong relationship.

For a complete overview of the Six Dimensions model for Mexico, I would like to refer to Annex XVII 6D
M exicos Six Dimensions
If we explore Mexican culture through the lens
of the 6-D Model, we can get a good overview
of the deep drivers of Mexican culture relative
to other world cultures.
Power Distance (81)
individuals in societies are not equal it
expresses the attitude of the culture towards
these inequalities amongst us. At a score of 81,
Mexico is a hierarchical society. This means that
people accept a hierarchical order in which
everybody has a place and which needs no
further
justification.
Hierarchy
in
an
organization is seen as reflecting inherent
inequalities,
centralization
is
popular,
subordinates expect to be told what to do and
the ideal boss is a benevolent autocrat
Individualism (30)
The fundamental issue addressed by this dimension is the degree of interdependence a society
maintains among its members. It has to do with whether peoples self-image is defined in terms of I or
We. Mexico, with a score of 30 is considered a collectivistic society. This is manifest in a close longterm commitment to the member 'group', be that a family, extended family, or extended relationships.
Loyalty in a collectivist culture is paramount, and over-rides most other societal rules and regulations.
The society fosters strong relationships where everyone takes responsibility for fellow members of their
group. In collectivist societies offence leads to shame and loss of face, employer/employee relationships
are perceived in moral terms (like a family link), hiring and promotion decisions take account of the
employees in-group, management is the management of groups.
58
Masculinity (69)
achievement and success, with success being defined by the winner/best in field a value system that
starts in school and continues throughout organisational life. A low score (feminine) on the dimension
means that the dominant values in society are caring for others and quality of life. Mexico scores 69 on
this dimension and is thus a Masculine society. In Masculine countries people live in order to work,
managers are expected to be decisive and assertive, the emphasis is on equity, competition and
performance and conflicts are resolved by fighting them out.
brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. Mexico
scores 82 on this dimension and thus has a very high preference for avoiding uncertainty. Countries
exhibiting high Uncertainty Avoidance maintain rigid codes of belief and behaviour and are intolerant of
unorthodox behaviour and ideas. In these cultures there is an emotional need for rules (even if the rules
never seem to work) time is money, people have an inner urge to be busy and work hard, precision and
punctuality are the norm, innovation may be resisted, security is an
important element in individual motivation.
This dimension describes how every society has to maintain some links
with its own past while dealing with the challenges of the present and
future, and societies prioritise these two existential goals differently.
The relatively low score of 24 means that the Mexican culture is
normative. People in such societies have a strong concern with
establishing the absolute Truth; they are normative in their thinking.
They exhibit great respect for traditions, a relatively small propensity
to save for the future, and a focus on achieving quick results.
Indulgence (97)
One challenge that confronts humanity, now and in the past, is the
degree to which small children are socialized. Without socialization we
do not become human. This dimension is defined as the extent to
which people try to control their desires and impulses, based on the
way they were raised. With a very high score of 97, Mexican culture
has a definite tendency toward Indulgence. People in societies
classified by a high score in Indulgence generally exhibit a willingness
to realise their impulses and desires with regard to enjoying life and
having fun. They possess a positive attitude and have a tendency
towards optimism. In addition, they place a higher degree of
importance on leisure time, act as they please and spend money as
they wish.
6.3 MABA analysis

analysis wont be elaborated in detail. This chapter includes the final positioning of Mexico in the MABA matrix and
the possible consequences thereof.
MABA of Malaysia
In Annex XIX MABA Complete
Excel on page 182 the complete
elaboration is added. The size of the
pie chart is based on the relative size
of the market compared to other
countries. The slice of pie stands for
the market share within the market of
consumer electronics within Mexico:
7,10% or $117,10 million USD.
Mexico is located in the part of the
MABA analysis which correspondent
with the strategy protect position.
The total business assessment score
for Mexico is 3,75. It is the countries
market size and market share, which
makes the difference. Therefore the
country moves further to the left on
the horizontal axis.
Due to the high market attractiveness
(score 4,15), Mexico is positioned
high on the vertical axis. Market
growth, market potential, intensity of
competition,
penetration
of
consumer electronics, environmental
performance index and consumption
and demand are all factors in which
the country ranks high on.
strategy.
60
7
BRAZIL
62
7. BRAZIL
This chapter provides an in-depth analysis of the country Brazil. In this section we will look more closely
at the macro-economic factors of Brazil through a DESTEP analysis. Also youll find in this chapter more
information about the Brazilian culture with amongst others the Six Dimensions Model of Geert
Hofstede. Last but not least the business attractiveness versus the market attractiveness is examined in
the MABA analysis.
7.1 DESTEP
case the delineation is the country Brazil. To gain insight in the macro environment of the potential
DESTEP analysis can be found in Annex XV: DESTEP Brazil on page 148.
Demographics - In July 2015 Brazil counted more than 204,2 million citizens. The
two most represented groups within the population are 0-14 years with 23,27%
(circa 47,5 million people) and 15-24 years with 16,47% (circa 33,6 million people)
and 25-54 years with 43,80% (circa 89,4 million people). There are a few less men
than women. The most common ethnicities in the country are white (47,7%) and
Mulatto (43,1%). It is the 6th largest country in the world when it comes to number
of residents and the 5th largest country in the world when it comes to the number
of square kilometres covered (more than
Economics Large and well-developed agricultural, mining, manufacturing, and
service sectors, and a rapidly expanding middle class characterize Brazil. Since
2003, Brazil has steadily improved its macroeconomic stability, building up foreign
reserves, and reducing its debt profile. After a strong growth in 2007 and 2008,
the onset of the global financial crisis hit Brazil in 2008. Brazil experienced two
quarters of recession, as global demand for Brazil commodity-based exports
dwindled and external credit investor confidence revived and GDP growth
reached 7,5%. GDP growth slowed since 2011, due to several factors, including:
overdependence on exports on raw commodities, low productivity, high
production costs and high inflation. After reaching an historic low growth
percentage of 4,5% in early 2014, the unemployment rate remains low, but is
rising.
Brazils GDP PPP per capita in international dollars has slightly more than tripled
from circa $5000 in 1990 to $16.200 in 2015. At this moment the Brazilian
economys development is in transition from stage two efficiency driven to stage
three innovation driven. The economy is one of the twenty largest emerging
markets.
Japan and Brazil have a good relationship, which goes back to the late 19th
century. More Japanese emigrants are found in Brazil than in any other country in
the world. Brazil is one of the most pro-Japanese countries in the world.
The Brazilian consumer electronics market faces a completely different economic

situation in 2015 than it did earlier. A downturn in the local economy resulted in
limited access to credit for consumers, higher interest rates and rising
unemployment. Together with other unfavourable economic indicators, these
conditions have a negative impact on demand for consumer electronics in general.
Samsung Electronics remained the leading manufacturer in consumer electronics
in Brazil in retail volume sales terms in 2015, followed by LG Electronics.
More interesting facts about the Brazilian economy:
A relatively high inflation rate of 6,3%.
A somewhat weak exchange rate of 44,1%.
The GDP official exchange rate is $2.347 trillion in 2014, representing
3,78% of the worlds economy.
Exports play an important role in the economy, influencing the growth level
of the Brazilian economy. Brazil exports for $224.600 million a year. This is
only $1.100 per resident.
The market size for consumer electronics is $3.911,10 million USD. This
The market potential in 2020 for consumer electronics is $7.113 mUSD. The
corresponding growth rate for market potential in 2020 is 180,87%.
In Brazil there are 25,27 million users of consumer electronics. The
Penetration in the Brazilian market is 16,10%.
Social & Cultural Brazil has made massive progress over the last decade in terms
of improving the quality of life of its citizens. In recent years, the country has seen a
track record of inclusive growth and poverty reduction. Brazil ranks above the
average in subjective wellbeing, work-life balance and social connections, but
below average in civic management, housing, environment quality, health status,
personal security, educations and skills.
Nearly 67% of people aged 15 to 64 years in Mexico have a paid job, slightly more
than the OECD employment average of 65%. Some 79% of men are in paid work,
compared with 60% of women. Good education skills are important requisites or
finding a job. In general, Mexicans are more satisfied with their lives than the
OECD average. When asked to rate their general satisfaction with life on a scale
from 0 to 10, Mexicans gave it a 7,0 grade, slightly higher than the OECD average
of 6.6.
Brazil is a young nation; the average age is 30.7 while 51% of the Brazilians are
aged under 30 years old. Within that, Brazilians are amongst some of the most
socially engaged people in the world and the prevalence of digital media creates
endless opportunities for brands. Eight out of 10 Brazilians are on Facebook and
67 million Brazilians used mobile Internet in 2013. 59,5% of the Brazilians will be
using the Internet by 2017. Brazilians consumers use social media to broadcast
their experiences and opinions.
64
There is an emerging rich class within Brazil: the country is home to 124
billionaires and some 194,000 millionaires the 12th largest group of millionaires
in the world. Thus there is an increasing demand for luxury products, which has
prompted brands like Tiffany & Co, Prada, Bentley, Herms and Ferrari to
successfully open stores in the country in recent years.
Meanwhile, a new middle class of empowered Millennials has emerged a large
consumer group equivalent to the size of the population of the UK. This cohort
demands higher quality services, better products and fair prices.
Brazilians are extremely proud people; while they recognize their countrys flaws
they also protect and promote its strengths with great passion. Although their fun
and vibrant culture is ever apparent, international brands that wish to succeed in
this country must develop a deep understanding of Brazilian culture and needs,
which differ not only from the rest of the world, but from city to city too. For
example, local investment is critical for global brands that wish to succeed in Brazil.
Similarly, adapting marketing campaigns and products to embrace what matters
and what is needed in necessary for a brands longevity within Brazil.
Technological The usage of smart metering equipment is changing the way
basic services are managed in Brazil. New technologies help to reduce waste and
control consumption, resulting in a large economy in domestic expenses.
The Internet of Things technologies by Brazilian industries should increase over
the next view years. The IoT technology sector has shown continuous growth in
recent years.
Interesting facts:
Credit Cards are currently the most used payment method for online
purchases in Brazil.
The number of Internet users in Brazil is 113.7 million, or Internet user
penetration is 55.7% in 2015. They spend an average of 28.5 hours on
Internet every month. Google is the most popular search engine in Brazil.
Android is obviously the most popular smartphone operating system in
Brazil, with 77,72% of all smartphones in July 2015. This is more than tripled
since January 2012, when less than 25% of the smartphone operating
systems in Brazil were Android.
Ecological & Environmental - Brazil is ranked well on the Environmental
means there is a lot of room for improvement. At this time, Brazil suffers from
deforestation, illegal wildlife trading, air and water pollution in major urban areas,
land degradation and water pollution caused by improper mining activities and oil
spills.
In whole of Brazil limited safety restrictions are aligned, mostly due to criminality
and demonstrations in major urban areas. The risk of being a victim of a natural
disaster following the World Risk Index is 4,21% - which is pretty safe.
Political & Legal The Political environment is not that stable. The risk of political
destabilization exists with Brazil being assessed with 47% political stability in the
Political Stability Index.
Taxes vary depending on the type of goods in Brazil. Brazil has a good relationship
with Japan, but no FTA or EPA.
The Brazilian government promotes education, starting with policies meant to
provide incentives for staying in school such as offering free meals and grants for
low-income families with children attending school.

For a complete overview of the Six Dimensions model for Brazil, I would like to refer to Annex XVII 6D
Brazils Six Dim ensions
If we explore Brazils culture through the lens of the 6-D Model, we can get a good overview of the deep
drivers of Brazilian culture relative to other world cultures.
Power Distance (69)
individuals in societies are not equal it expresses
the attitude of the culture towards these
inequalities amongst us. With a score of 69, Brazil
reflects a society that believes hierarchy should be
respected and inequalities amongst people are
acceptable. The different distribution of power
justifies the fact that power holders have more
benefits than the less powerful in society. In Brazil
it is important to show respect to the elderly (and
children take care for their elderly parents). In
companies there is one boss who takes complete
responsibility. Status symbols of power are very
important in order to indicate social position and
communicate the respect that could be shown.
66
Individualism (38)
The fundamental issue addressed by this dimension is the degree of interdependence a society
maintains among its members. It has to do with whether peoples self-image is defined in terms of I or
We. Brazil has a score of 38 which means that in this country people from birth onwards are integrated
into strong, cohesive groups (especially represented by the extended family; including uncles, aunts,
grandparents and cousins) which continues protecting its members in exchange for loyalty. This is an
important aspect in the working environment too, where for instance an older and powerful member of
a family is expected to help a younger nephew to be hired for a job in his own company. In business it
is important to build up trustworthy and long lasting relationships: a meeting usually starts with general
conversations in order to get to know each other before doing business. The preferred communication
style is context-rich, so people will often speak profusely and write in an elaborate fashion.
Masculinity (49)
achievement and success, with success being defined by the winner / best in field a value system that
starts in school and continues throughout organisational life. A low score (feminine) on the dimension
means that the dominant values in society are caring for others and quality of life. Brazil scores 49, a very
intermediate score on this dimension.
future can never be known: should we try to control the future or just let it happen? At 76 Brazil scores
high on UAI and so do the majority of Latin American countries. These societies show a strong need for
rules and elaborate legal systems in order to structure life. The individuals need to obey these laws,
however, is weak. If rules however cannot be kept, additional rules are dictated. In Brazil, as in all high
Uncertainty Avoidance societies, bureaucracy, laws and rules are very important to make the world a
safer place to live in. Brazilians need to have good and relaxing moments in their everyday life, chatting
with colleagues, enjoying a long meal or dancing with guests and friends. Due to their high score in this
dimension Brazilians are very passionate and demonstrative people: emotions are easily shown in their
body language.
This dimension describes how every society has to maintain some links with its own past
while dealing with the challenges of the present and future, and societies prioritise these
two existential goals differently. Normative societies, which score low on this dimension,
for example, prefer to maintain time-honoured traditions and norms while viewing
societal change with suspicion. Those with a culture that scores high, on the other hand,
take a more pragmatic approach: they encourage thrift and efforts in modern education
as a way to prepare for the future. At 44, Brazil scores as intermediate in this dimension.
Indulgence (59)
One challenge that confronts humanity, now and in the past, is the degree to which small
children are socialized. Without socialization we do not become human. This dimension
is defined as the extent to which people try to control their desires and impulses, based
on the way they were raised. Brazil's high score of 59 marks it as an Indulgent society.
People in societies classified by a high score in Indulgence generally exhibit a willingness
to realise their impulses and desires with regard to enjoying life and having fun. They
possess a positive attitude and have a tendency towards optimism. In addition, they place
a higher degree of importance on leisure time, act as they
please and spend money as they wish.
7.3 MABA analysis

analysis wont be elaborated in detail. This chapter includes the final positioning of Brazil in the MABA matrix and
MABA of Malaysia
In Annex XIX MABA Complete Excel on
page 182 the complete elaboration is
added. The size of the pie chart is based
on the relative size of the market
compared to other countries. The slice of
pie stands for the market share within the
market of consumer electronics within
Brazil: 7,10% or $277,70 million USD.
Brazil is located in the part of the MABA
analysis which correspondent with the
strategy Build Selectively.
The total business assessment score for
Brazil is 4,05 It is the countries market size
and market share, which makes the
difference. Therefore the country moves
further to the left on the horizontal axis.
Due to the only average market
attractiveness (score 3,35), Brazil is
positioned mid-level on the vertical axis.
Environmental
Performance
Index,
Intensity of Competition and the
Compound Annual Growth Rate are all
factors in which the country ranks high on.
On the other hand, the low market growth
and low consumption and demand
negatively
impact
the
market
attractiveness of the Brazilian market.
strategy.
68
8
CHINA
70
8. CHINA
This chapter provides an in-depth analysis of the country China. In this section we will look more closely
at the macro-economic factors of China through a DESTEP analysis. Also youll find in this chapter more
information about the Chinese culture with amongst others the Six Dimensions Model of Geert
Hofstede. Last but not least the business attractiveness versus the market attractiveness is examined in
the MABA analysis.
8.1 DESTEP
case the delineation is the country China. To gain insight in the macro environment of the potential
DESTEP analysis can be found in Annex XVI: DESTEP China on page 159.
Demographics - In July 2015 China counted more than 1,36 trillion citizens. The
three most represented groups within the population are 0-14 years with 17,08%
(circa 233,5 million people), 15-24 years with 13,82% (circa 188,9 million people)
and 25-54 years with 47,95% (circa 655,7 million people). There are more men
than women in the Chinese economy. The Chinese economy is divided in multiple
ethnic groups, but the largest group is Han Chinese with 91,6% of the people.
Economics Since the late 1970s China has moved from a closed, centrally
planned system to a more market-oriented one that plays a major global role. In
2010 China became the worlds largest exporter. The restructuring of the economy
and resulting efficiency gains have contributed to a more than tenfold increase in
GDP since 1978.
The Chinese government faces numerous economic challenges, including
reducing its high domestic savings rate and correspondingly low domestic
consumption. Also facilitation higher-wage job opportunities for the aspiring
middle class, including rural migrants and increasing number of college
graduates. Thirdly reducing corruption and other economic crimes and last
containing environmental damage and social strife related to the economys rapid
transformation.
Economic development has progressed further in coastal provinces than in the
interior, and by 2014 more than 274 million migrant workers and their dependents
had relocated to urban areas to find work. One consequence of population control
policy is that China now faces the rapidly aging population.
China is an innovating, fast growing emerging market. Following the Global
Competitive Index survey the country ranked with a score of 4,89 (on a scale of
one to seven) 28th place out of 144 countries researched.
Despite Japan an China are only separated by the East China Sea, but their
relationship has been strained at times by Japans refusal to acknowledge its
wartime past to satisfaction of China. Relations warmed considerably after Shinzo
Abe became Prime Minister of Japan in 2006.
Chinas GDP PPP per capita in international dollars more than thirteen folded from
circa $1000 in 1990 to $13.200 in 2015. At this moment the Chinese economys
can be described as efficiency driven. Their market size, macroeconomic
environment, health and primary education level are assessed the highest.
Foreign investors seek business in China mainly because of three things: size of
the market, the very low costs of labour and Chinas growth potential together.
Although the growth of the economy slowed down in China in 2015, overall
consumer electronics continued to grow, especially in new categories of wearable
electronics and OLED TVs due to their innovation and smart functions.
Chinese citizens prefer domestic brands above non-domestic brands. Conversely,
international brands experienced depression due to the threat for domestic
brands.
More interesting facts about the Chinese economy:
A relatively low inflation rate of 2%.
A somewhat strong exchange rate of 5,2%.
The GDP official exchange rate is $10,36 trillion in 2014.
China exports for $2,34 trillion every year.
Market revenue growth on consumer electronics in 2015 is 27,3% (absolute
amount $27.918,8 million).
The market potential in 2020 for consumer electronics is $57.597 mUSD.
The corresponding growth rate for market potential in 2020 is 206,3%.
In China there are 153,2 million users of consumer electronics. The
Penetration in the Chinese market is 13,6%.
Social & Cultural Traditional cultural values that influence the psyche of the
Chinese people are harmony, benevolence, righteousness, courtesy, wisdom, and
honesty, loyalty a filial piety. Of this, the core value is harmony.
The marketing-communications market in China is undergoing a huge
transformation. Internet, social media and the rise of information technology have
generated a disruptive influence, and traditional media no longer has the
dominant discourse due to the reshaping of the traditional industry value chain,
weakening of the distribution channels, and closer communication between
advertisers and consumers. The explosive growth of media contacts, as well as the
transparency and flattening of dissemination of information, has led to the
changing business marketing requirements.
72
Overall, three macro forces are driving the Chinese marcom-market:

1. Economic transformation
2. Technological innovations
3. Rising consumption level
The market experiences leads to six transformations: disintermediation, shift to
nonlinear consumption, one-stop agency model, value chain reconstruction,
industry restructure and value chain expansion.
New media are widely considered as one of the most exciting new emerging
things at present. Mobile Internet access, applications and this new media will
reshape the landscape of Chinese industries. These developments take care of the
acceleration of the new media technologies and their infrastructure.
Since 2009 the Chinese government blocked Twitter, Facebook and YouTube after
peaceful protests by Uighurs, Chinas Muslim ethnic minority turned into deadly
riots in Xinjiang. Social media usage continues to grow across the world, and
China is no exception. With an Internet user population of 650 million (nearly twice
the entire population of the United States) and censorship laws that prohibit those
consumers from participating in the social networks that dominate the rest of the
world popularity, China did the inevitable and created their own platforms and
networks with some, like Tencent Weibo, boasting user bases exceeding half a
billion accounts (for comparison, consider that Facebook has around 1.3 billion
users). Therefore it is necessary to have a China-specific social strategy to reach
the population with extraordinary buying power and a propensity for brand
hopping. Brands that arent investing where Chinese users are spending their time
are missing a critical opportunity to connect and influence purchase decisions.
The complete overview of social media usage can be found in Annex XVI DESTEP
China on page 157.
Technological Although IT is now well and truly a global industry, each
individual region and country reacts to international influences in its own way.
Computing everywhere is changing how people experience their lives in China:
the mobile Internet has become an important part of Chinese customers daily
lives, with more than 1.4 billion mobile devices in use. This trend, along with the
Chinese governments effort to upgrade its industries through the Internet Plus
initiative, is driving computing everywhere.
The Internet of Things (IoT) brings computer power everywhere. The Chinese
government is supporting this development with projects such as smart cities and
smart device ecosystems. Another technology, which reached a critical inflection
point, is 3D printing.
As in other parts of the world, big data is taking a fast lead in China. Advanced
analytics are researched and tested with for example predictive and prescriptive
knowledge to improve business operations. Context-rich systems provide agility
and responsiveness for business operations. The explosions of rich customer data
collected from Internet activity, connected homes and IoT
devices will make context-rich systems a reality.
Ecological & Environmental - Malaysia is ranked on a critical spot on the

Environmental Performance Index with their score of 43 out of 100. This still means
there is a lot of room for improvement. At this time, China suffers among other
things from air pollution from reliance on coal produces acid rain, water shortage
(particularly in the north) and water pollution. Also China is the worlds largest
single emitter of carbon dioxide from the burning of fossil fuels.
Malaysia is a relatively safe country. The World Risk Index has assessed Malaysia
with 6,44% risk of becoming victim of a natural hazard. China is frequently hit by
typhoons (about five a year), damaging floods, tsunamis, earthquakes, droughts
and land subsidence. Beside that, China contains some historically active
volcanoes.
Political & Legal The Peoples Republic of China is a communist state and counts
23 provinces, five autonomous regions and four municipalities. The Chinese civil
law is influenced by Soviet and continental European civil law systems. Legislature
retains power to interpret statutes.
Both formal and informal rules, which firms must abide by, impact the country.
Over the past view years the government focused on the development of ecommerce. The legal framework for e-commerce is still in early stage. China has
little experience for drafting e-commerce legislation for topics like intellectual
property rights protection and tax. There arent any regulations supporting the
privacy, recognition of digital signatures, consumer rights and validation of
electronics contracts.
The Political Stability Index assessed China with a political stability of only 44%.
This means there is a realistic chance the government will destabilize, despite
there are no grounds at this moment.
Although the relationship between Japan and China is getting stronger, it isnt
strong enough for a Free Trade Agreement. For several years there have been
negotiations, which unfortunately didnt led to an agreement yet.
74

For a complete overview of the Six Dimensions model for China, I would like to refer to Annex XVII 6D
Chinas Six Dim ensions
If we explore the Chinese culture through the lens of the 6-D Model, we can get a good overview of the
deep drivers of Chinese culture relative to other world cultures.
Power Distance
This dimension deals with the fact that all individuals in societies are not equal it expresses the attitude
of the culture towards these inequalities amongst us. At 80 China sits in the higher rankings of PDI i.e. a
society that believes that inequalities amongst people are acceptable. The subordinate-superior
relationship tends to be polarized and there is no defense against power abuse by superiors. Individuals
are influenced by formal authority and sanctions and are in general optimistic about peoples capacity
for leadership and initiative. People should not have aspirations beyond their rank.
Individualism
The fundamental issue addressed by this
dimension is the degree of interdependence a
society maintains among its members. It has to
do with whether peoples self-image is defined
in terms of I or We. At a score of 20 China is
a highly collectivist culture where people act in
the interests of the group and not necessarily
of themselves. In-group considerations affect
hiring and promotions with closer in-groups
(such as family) are getting preferential
treatment. Employee commitment to the
organization (but not necessarily to the people
in the organization) is low. Whereas
relationships with colleagues are cooperative
for in-groups they are cold or even hostile to
out-groups. Personal relationships prevail over
task and company.
Masculinity
achievement and success, with success being defined by the winner / best in field a value system that
starts in school and continues throughout organizational life. A low score (feminine) on the dimension
means that the dominant values in society are caring for others and quality of life. At 66 China is a
Masculine society success oriented and driven. The need to ensure success can be exemplified by the
fact that many Chinese will sacrifice family and leisure priorities to work. Service people (such as
hairdressers) will provide services until very late at night. Leisure time is not so important. The migrated
farmer workers will leave their families behind in faraway places in order to obtain better work and pay
in the cities. Another example is that Chinese students care very much about their exam scores and
ranking, as this is the main criterion to achieve success or not.
Uncertainty Avoidance
brings with it anxiety and different cultures have learnt to deal with this anxiety in different ways. At 30
China has a low score on Uncertainty Avoidance. Truth may be relative though in the immediate social
circles there is concern for Truth with a capital T and rules (but not necessarily laws)
abound. Nonetheless, adherence to laws and rules may be flexible to suit the actual situation and
pragmatism is a fact of life. The Chinese are comfortable with ambiguity; the Chinese language is full of
ambiguous meanings that can be difficult for Western people to follow. Chinese are adaptable and
entrepreneurial. At the time of writing the majority (70% -80%) of
Chinese businesses tend to be small to medium sized and family
owned.
Long Term Orientation
This dimension describes how every society has to maintain some
links with its own past while dealing with the challenges of the
present and future, and societies prioritize these two existential goals
differently. China scores 87 in this dimension, which means that it is a
very pragmatic culture. In societies with a pragmatic orientation,
people believe that truth depends very much on situation, context
and time. They show an ability to adapt traditions easily to changed
conditions, a strong propensity to save and invest, thriftiness, and
perseverance in achieving results.
Indulgence
One challenge that confronts humanity, now and in the past, is the
degree to which small children are socialized. Without socialization
we do not become human. This dimension is defined as the extent
to which people try to control their desires and impulses, based on
the way they were raised. China is a restrained society as can be seen
in its low score of 24 in this dimension. Societies with a low score in
this dimension have a tendency to cynicism and pessimism. Also, in
contrast to Indulgent societies, restrained societies do not put much
emphasis on leisure time and control the gratification of their desires.
People with this orientation have the perception that their actions are
restrained by social norms and feel that indulging themselves is
somewhat wrong.
76
8.3 MABA analysis

analysis wont be elaborated in detail. This chapter includes the final positioning of China in the MABA matrix and
MABA of Malaysia
In Annex XIX MABA Complete Excel
on
page
182
the
complete
elaboration is added. The size of the
pie chart is based on the relative size
of the market compared to other
countries. The slice of pie stands for
the market share within the market of
consumer electronics within China:
0,6% or $167,5 million USD. China is
located in the part of the MABA
analysis which correspondent with the
strategy Invest to Build. Due to the
large market size this might be hard to
see, but the actual location is the heart
of the circle.
The total business assessment score
for China is 3,45. It is the countries
market size and market share, which
makes the difference. Therefore the
country moves a little further to the
left on the horizontal axis.
Due to the only moderately strong
market attractiveness (score 3,95),
China is positioned high on the vertical axis. Market growth, market potential, intensity of competition and
consumption and demand are all factors in which the country ranks high on. On the other hand, the low
Compound Annual Growth Rate, the penetration of consumer electronics and the Environmental Performance
Index negatively impact the market attractiveness of the Chinese market.
strategy.
78
9
ADVICE &
STRATEGY
80
9. ADVICE & STRATEGY

After a long journey now finally comes the last and therefore perhaps the most essential part: the advice
and strategy within the chosen country. The first question of all is: Which country will it be? Malaysia,
Brazil, China or maybe Mexico? Thereafter target markets, attractive industries and regions, productmarket combinations and positioning is evaluated and discussed. The last step of this chapter is the
strategic approach within this country. How does Sony which has been selling products in Malaysia for
a while now provide the strength to expand their market share?
9.1 And the winner is Malaysia!

Although Malaysia has the smallest market of the four remaining countries, this country has overall the
most positive reviews in the Country Selection Model. Also, the DESTEP analysis showed us the
interesting macro economic environment for Sony Corporation. In addition, the strategy based on the
MABA analysis Invest to build meets the approach to increase market share. Therefore Malaysia is
recommended as the most interesting emerging market to concentrate their sales efforts for smart
devices on in the next five years.
The strengths and threats of Malaysia in a glance

Strengths
More than 17,5 million people between 15-54 y/o.
Middle-income country, which is attempting to
achieve high-income status in 2020.
Government works on boosting product demand
with Economic Transformation Program (ETP) and
the demand for consumer electronics is growing.
One of the three most interesting emerging
markets following the Global Innovation Index.
Very strong relationship with Japan. Countries
have a FTA & EPA .
Overall infrastructure of Malaysia is one of the most
developed in Asia. Country is strategically located
on the most important shipping lane in the world.
High GDP PPP of $25.100 and GNI per capita of
$22.530 USD.
Interesting market: low inflation rate, interesting
market potential and low market penetration in
combination with the high market growth of
25,3%, which means there is enough room to
expand.
Peaceful multi-cultural society with high political
stability level of 71%.
Very well development of information technology.
Good score of 59,31 on the EPI.
Family is the centre of society. This is also reflected
in the low score of Individualism of 26.
Highest scoring country with their Market
Attractiveness in the MABA analysis (score 4,20).
Threats
Relatively small market (30,5 million citizens).
Countries GDP exists for 80% out of exports.
Currently a small market share within Malaysia,
which means that extra efforts in marketing are
needed if Sony wants to gain market share.
A high score on Power Distance (100), which
means that individuals in society are not equal.
Lots of religions and thereby public holidays to
take into account.
8.2 A strategic approach for Malaysia

In the first chapter of this report the Marketing Mix is discussed. At this stage it is important to discover
the right mix on the right market for the smart devices of Sony Corporation.
Communication Target Market
Malaysia is a relatively small country, which means there are no geographical limitations on the market
of Malaysia. The government supports the ICT market with for example the Economic Transformation
Program (ETP). This causes a growing demand in consumer electronics and thus smart devices.
The most interesting target group based on age are the people from 15 to 54 years old: approximately
17,5 million. Malaysians attach great value to hierarchy even within the family so an important
consequence for the communication target group is that this will focus mainly on the men between 25
and 54 years old (about 6 million people). To segment this group further we only look at the people who
live in an urban area (approximately 75% of the population, so about 4,5 million men).
Malaysians will feel uncomfortable when communicating very directly. There are many children in the
Malaysian economy (about 8,69 million). The form the future buyers of the Sony products and it is
important that their dad inspires them to buy Sony instead of another brand. Mothers who often play a
supporting role within the family, must experience a lot of easiness while using Sony products. The
husband is providing the family income and Sony products should make the family-life more
comfortable. There is a lot of respect for women, because they are seen as more fragile.
The Malaysian population can be described as a very collectivistic society: long-term commitment to the
group (such as family or other relationships). Malaysians are loyal people who take responsibility for
fellow members of their group. Another thing, which characterizes the Malaysian target group, is the
low uncertainty avoidance. This is expressed with a more relaxed attitude and a high tolerance when
divining from the norm. Malaysian people enjoy life and are easy-spenders. Having fun is important, as
well as a positive attitude.
The primary buyers of Sony products in Malaysia will have a GNI per capita between $17.500 (circa
$1.458 monthly) and $25.000 (circa $2.083 monthly) USD. A 43 Sony Led television costs about $565 in
Malaysia and a 50 about $790. There are also lower prices and higher prices televisions within the Sony
product range.
Positioning in Malaysia
At Sony, the mission is to be a company that inspires and fulfils curiosity. With a passion for technology,
content and services they want to move people emotionally. Their tagline is Be Moved. The
positioning is build about these core values, but differs from country to country. The positioning used in
Malaysia will be the Symbolic Positioning. This means that it is about self-expression, ego identification
and belonging to a group.
This positioning is an extension of the positioning that was launched in April 2015 for Sony Mobile:
Everyday Extraordinary. A campaign will be set up to promote Sonys strength to make everybodys
day extraordinary, over and over again. It is all about the customer experience: how can customers get
the most out of their devices and out of their lives.
82
With the I can tagline people will be inspired to get more out of life. Unlike the Everyday
Extraordinary campaign, which went live in April 2015, this campaign runs particularly from what you
can get out of life with the Sony products. So it is about Sony but in a less direct and more inspirational
way of communicating. Sometimes this tagline will be reshaped with we can.
This campaign uses product characteristics and/or customer benefits to position the brand. Although
Sony is a worldwide famous brand, the first step is to work on brand recognition. Nowadays there is a
massive range of different products and services. In many cases, these products appear in a way that the
average citizen is no longer able to distinguish these from each other. Previously, for example, we
bough just butter for our bread but by the current range of different types of butter brands we have to
try to discern by positioning our brand.
Positioning
Its innovative and luxurious furnishings do not only characterize Sony products, it also provides many
conveniences. High resolution visuals (photos, videos) and high resolution sound to bring you back in
time to those beautiful moments with your beloved family. Creating them with a Cybershot Sony
camera or with a Sony smartphone and look back at those moments via the wireless connection with the
Sony Smart TV. Sony makes sure that your family and you have everything so you can enjoy life to its
fullest and that memories are preserved.
Your wife can read an e-book on a Sony e-reader while she is at home watching the children. She can
play games on a Sony tablet with the children and your children can work on their education on a Sony
tablet. Pleasure in life creates so much good. Enjoy life with family and friends, good food and Sony will
help you to inspire you to fulfil your dreams. You can work on your career. Youre always available. You
can write notes. Listen music. Enjoy life. Sony inspires you to do whatever you want to do. There are
unlimited possibilities. You can do it.
Campaigns
Main Character
Young men, ca. 25 y/o
Women/Mother, ca. 30 y/o
Family/Friends
Child, about 10 y/o
Athletic men, approx. 40 y/o
Family with 14-16 y/o children
Young men, ca. 30 y/o
Children
Girl, about 15 y/o
Working men, about 40 y/o
Product
Smartphone
E-reader
Camera / Smart TV
Tablet
Wireless headphones
Smart TV
Smart Watch
Tablet
Tablet
Smartphone
Tagline
I can make my dreams come true.
I can develop myself.
We can collect memories.
I can make my homework.
I can feel free.
We can enjoy watching a movie together.
I can analyse.
We can play together.
I can study.
I can work on my career.
It is also possible without the I can strapline and to let people tell in a video advertisement WHAT
they can do with the Sony products and which life goals they can achieve.
Strategy
The Ansoff Matrix is a strategic planning tool that provides a framework to help executives, senior
managers, and marketers devise strategies for future growth. Sony will focus on gaining a larger market
share within Malaysia. Following the Ansoff Matrix this is possible with four growth-strategies: to sell
more of already existing products on the already existing market (market penetration), to sell new
products on the already existing market (product development) and to sell existing products on a new
market (market development) and to sell new products on a new market (diversification).
Since Sony already sells in Malaysia and it involves the already existing smart devices, the growth
strategy of Ansoff will be market penetration. This strategy, together with the MABA strategy Invest to
build will ensure that the Sony market share within Malaysia will increase. Sony should invest in their
marketing efforts to create high brand awareness. In the second phase, when the brand awareness has
increased significantly, sales will be boosted by promotional campaigns and offers.
84
EPILOGUE
The writing of this consultancy report for Sony
Corporation was the first report that I have written
in English. In the first weeks I had no clear picture
of how and where to start. Since Ive started writing
this report it has cost a lot of time. Normally this
was a project of four team members, which wasnt
possible in the current situation. Therefore good
planning and understanding of what must be
delivered at any moment was crucial.
In my opinion, I have worked very structurally: I
started with a plan of approach and from there I
established the classification of chapters of this
report. Where I first started to develop the design
in earlier reports, when I didnt know how to tackle
the challenge, I now kept digging and asked
people for their advice. Therefore Id like to grab
this opportunity to once again thank everyone who
has helped me to realize this consultancy report.
Another pitfall in earlier reports was having too
much core text. I recalculated it and went with 49
pages exactly within the maximum of 50 pages of
core text. When I knew how I was going to do it
and where to find the information, it went nearly at
the speed of light. It was a process in which a lot of
information was required. Therefore I needed to
do a lot of desk research. I managed to do this in a
structural way with help of various research and
marketing models.
Looking back on the whole process I guess I was
thinking too difficult and I wanted to collect too
much information. In preparing the references
based on all the footnotes I came across more than
400 footnotes! Sometimes want to do too good
isnt good at all.
And now, especially to Mr Zouhair ben
Abdelkarim: Thank you for reading and reviewing
this report.
With kind regards,
Ria van der Veen
86
REFERENCES
BOOKS
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Veldman, H. (2009). Export Management: Country Selection Model, MABA Analysis.
Hofstede, G. & G.J. Hofstede & M. Minkov (2010). Culture and Organisations: Software of the Mind.
INTERNET
B
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BSCN, Sanctions list countries. (2016, January 14). Retrieved from http://goo.gl/TmlhIf.
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CIA, World Fact Book, Population. (2015). Retrieved from https://goo.gl/hFS4Zc.
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Investing Answers, Market Penetration. (no date). Retrieved from http://goo.gl/gOKpO0.
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J
K
KwintEssential, Malaysia. (no date). Retrieved from http://goo.gl/pZYPxP.

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OECD Better Life Index, Mexico. (2015). Retrieved from http://goo.gl/O1abML.
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Rijksoverheid, Reisadvies China. (2015, December 24). Retrieved from https://goo.gl/jvYfwl.
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Rijksoverheid, Reisadvies Chile. (2015, September 17). Retrieved from https://goo.gl/YlmjLc.
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Rijksoverheid, Reisadvies Iraq. (2015, December 17). Retrieved from https://goo.gl/EbCK4a.
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88
Sony Corp., Annual Report. (2012). Retrieved from http://goo.gl/JrHZpT.

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90
APPENDICES
92
I.
RANKING THE COUNTRIES WITH THE COUNTRY SELECTION
MODEL17
The Country Selection Model is a three-phase filter-model. In every phase of the model, a number of countries are
eliminated from the list of potential emerging markets. Finally four potential lucrative and thereby emerging
markets are left over.
To create a new ranking in the list of 23 countries and eliminate 10 countries in the first phase and another nine in
the second, a weight is provided to every filter criteria. The weight determines in what degree the found data will
count. Do this for all the criteria and multiply this with the ranking number to create a weighted score. For every
filter criteria the interval borders of the rankings have to be defined: from one (lowest score possible) to five
(highest score possible). The weighted score and the new ranking are a result of the weight multiplied with the
score awarded to the filter criterion. The overall, weighted scores of the countries could be compared now.
In the first phase, the pre-filter analysis, the following factors & weights are used:
Import restrictions: sanction country/high risk country
Actual distance from Japan
Risk of disasters based on the World Risk Index
Travel advice, risks and common sense
Sales tax & Import duty rate
GDP Purchase Power Parity
Total
Weight
0,15
0,05
0,25
0,20
0,20
0,15
1,00
The second phase is the Rough Scan, the following factors & weights are used:
Trade relation between Japan and
Gross National Income PPP per capita in USD
Inflation rate
Population size
Exports in millions USD
Total
Weight
0,15
0,20
0,10
0,20
0,20
0,05
0,10
1,00
In the final phase the Detailed Survey the following filter criteria are used:
Consumption Consumer Electronics / Product demands
Revenue growth of consumer electronics market
Market penetration consumer electronics
Average Revenue Per User per Year
Intensity of competition
Trade promotions
Environmental concerns
Total

17
"Country Selection Model." Book: Export Planning From page 77. Autor: J.A. Leeman. Retrieved on 6 December 2015.
Weight
0,15
0,15
0,20
0,10
0,15
0,10
0,15
1,00
II.
PRE FILTER ANALYSIS THE CRITERIA
Import restrictions
Restrictions on imports generally take two forms: tariffs and quantitative restrictions. Tariffs are taxes on imported
goods upon their entry into a country. Tariffs, or import taxes, are usually calculated as a percentage of the value of
18
a given imported product . Also called import controls, the primary import restrictions are: tariffs (import duties)
or taxes levied on the imported goods to make them costlier, import licenses or import quotas that limit the total
quantity of goods imported, or imported from a certain country, currency restrictions that limit the amount of
foreign exchange available for payment of imports, and prohibition that prevents entry of illegal or harmful items.
19
The last three are collectively known as non-tariff barriers .
Sanctions also referred to as restrictive measures against third countries, individuals or entities, are an essential
EU foreign policy tool that it uses to pursue objectives in accordance with the principles of the Common Foreign
and Security Policy. Certain EU measures are imposed by Resolutions adopted by the UN Security Council under
Chapter VII of the UN Charter. The EU may however decide to apply autonomous measures in addition to the UNs
20
measures or adopt restrictive measures autonomously .
Companies active in a high-risk country are taking the risk to break human rights. In countries where human rights
are regulated by law, the chance of breaking them is much smaller. For countries underlying principle is that
theyre not responsible for grave violations of human rights under the Universal Declaration of Human Rights and
subsequent international human right standards. Government bonds of high-risk countries are responsible for the
21
following serious violations of international law: torture, genocide, and crimes against humanity or war crimes .
In general terms, the EU imposes its restrictive measures to bring about a change in policy or activity by the target
country, part of a country, government, entities or individuals. They are a preventive, non-punitive, instrument,
which would allow the EU to respond swiftly to political challenges and developments. The consequences of being
found guilty of breaching sanctions are serious. A number of financial institutes have been subject to multi-million
22
dollar fines and settlements with USA and UK regulators for sanction breaches .
Import Restrictions: sanction country/high risk country (weight: 0,15)
Score 1:
Very much import restrictions, also applies to Sony PMCs. Sanction country.
Score 2:
Some import restrictions, which do not specifically apply to Sony PMCs. Sanction country.
Score 3:
Single restriction, also applies to Sony PMCs. (Or only a) High-risk country.
Score 4:
A single restriction, which do not specifically apply to Sony PMCs. High-risk country.
Score 5:
Neither a sanction country nor a high-risk country. No import restrictions.
Import taxes explained in a nutshell
In general, import duty is a tax that the importer has to pay to bring foreign goods into his or her country. Import
VAT (Value Added Tax) is a tax charges on imported goods and services. Duty and VAT are calculated as a
percentage of the value of the imported goods, consisting of the product value and the freight & insurance costs.
Import duty rates vary depending on the type of goods; many goods are duty free. Relief from duty and VAT may
apply in special cases. Also, in some cases additional duties may be charged or dismissed, depending of the
23
24
country of manufacture of the goods . At DutyCalculator.com the actual import taxes and sales taxes are found .

18
"Import Restrictions" Globalization101.org. Retrieved 3 December 2015.

"Business Dictionary - Import restrictions." Retrieved on 22 November 2015.
20
"Sanctions" European Union External Action. Retrieved 3 December 2015.
21
ASN Bank Issuepaper Risicolanden. PDF. Retrieved on 13 December 2015.
22
"Embargoes and Sanctions - what international companies need to know" Out-Law.com. Retrieved on 30 November 2015.
23
"Import taxes explained in a nutshell." Dutycalculator.com. Retrieved on 5 December 2015.
24
"Import taxes and duty taxes." DutyCalculator.com. Retrieved on 5 December 2015.
19
94
Sales tax & import duty rate (weight 0,20)

Score 1:
High import duties (>10%) and sales tax higher than 15%.
Score 2:
Import duties (<10%) and sales tax >10%.
Score 3:
Import duties OR sales tax.
Score 4:
No import duties. Sales tax >15%.
Score 5:
No import duties. Sales tax <15%.
Actual distance
An important part in determining transportation costs is the actual distance that must be covered. The actual
distances from Japan to every possible emerging market are calculated via http://nl.distance.to. At Sony.net we
figured out that most of Sonys production takes place in Japan, China and other parts of Asia. Thats why we chose
25
to calculate the actual distance from Japan .
Actual Distance from Japan (weight 0,05)
Score 1:
16.000KM up to 20.000KM.
Score 2:
12.000KM up to 15.999KM.
Score 3:
8.000KM up to 11.999KM.
Score 4:
4.000KM up to 7.999KM.
Score 5:
0KM up to 3.999KM.
World Risk Index
This is a list of countries by natural disaster risk, as measured in the World Risk Index, calculated by the United
Nations University for Environment and Human Security and featured in the 2013 World Risk Report published by
the Alliance Development Works. The report systematically considers a countrys vulnerability, and its exposure to
natural hazards to determine a ranking of countries around the world based on their disaster risk.
The WRI determines the risk of becoming a victim of a disaster as a result of vulnerability and natural hazards such
as earthquakes, storms, floods, droughts and sea level rise for 173 countries worldwide. The WRI is based on 28
indicators and research data, which are globally freely available, and results in a global risk ranking and maps,
which allow for comparison between countries. Risk is at its highest where a high level op exposure to natural
26
hazards coincides with very vulnerable societies .
Risk of disasters based on the World Risk Index (weight 0,25)
Score 1:
More than 10% chance of natural risks.
Score 2:
More than 7,5% to 10% chance of natural risks.
Score 3:
More than 6% to 7,5% chance of natural risks.
Score 4:
More than 3,5% to 6% chance of natural risks.
Score 5:
Less than 3,5% chance of natural risks.
Travel advice, risks and common sense
The Dutch government reports for almost every country a travel advice based on four levels of safety: no travel
limitations, limited safety restrictions, travel only if necessary and do not travel in or to this area advices. The
website also contains background information upon which this advice is based, such as political circumstances,
natural disasters, criminality, terrorist threat et cetera.
Travel advice, risks and common sense (weight 0,20)
Score 1:
Red: do not travel area.
Score 2:
Dark orange: only if necessary travel area.
Score 3:
Light orange: many safety limitations, be aware while traveling in this area.
Score 4:
Yellow: some safety instructions, limited things to keep in mind while traveling in this area.
Score 5:
Green: no limitations, safe travel area.

25
26
"Production areas Sony." Sony.net. Retrieved on 6 December 2015.

"World Risk Index." World Risk Report.org. Retrieved on 6 December 2015.
GDP per Capita Purchasing Power Parity

Purchasing Power Parity conversion factor is the number of units of a countrys currency required to buy the same
amounts of goods and services in the domestic market as U.S. Dollar would buy in the United States. This
conversion factor is for Gross Domestic Product. For most economies Purchasing Power Parity (PPP) figures are
extrapolated from the 2011 International Comparison Program (ICP) benchmark estimates or imputed using a
statistical model based on the 2011 ICP. The 47 High- and upper middle-income economies conversation-factors
27
are provided by Eurostat and the Organisation for Economic Cooperation and Development (OECD) .
Gross Domestic Product Purchasing Power Parity (weight 0,15)
Score 1:
PPP up to $6.500.
Score 2:
PPP from $6.501 up to $13.000.
Score 3:
PPP from $13.001 up to $18.000.
Score 4:
PPP from $18.001 up to $23.000.
Score 5:
PPP $23.001 and higher.

27
96
"Purchasing Power Parity explained." Worldbank.org. Retrieved on 6 December 2015.
III.
COUNTRY PROFILES PRE-FILTER ANALYSIS
1. China
28
Import restrictions: sanction country/high risk country - The following restrictive measure applies to China:
29
Embargo on arms . This import restriction will not apply to Sony products, as Sony does not produce arms or
30
weapons. China is a sanction country AND a high risk country . Therefore China is being assessed with score
level two: Some import restrictions, which do not specifically apply to Sony PMCs. Sanction country.
31
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to China is
approximately 3000 kilometres. Therefore China is being assessed with score level five.
32
Risk of disasters based on the World Risk Index - The WRI for China is 6,80%. That means that China is being
assessed with score level three.
Travel advice, risks and common sense - The largest part of China is save to travel in. In august 2015 some
major explosions in Tianjin harbour took place and hundreds of people were killed or wounded. Only limited
entrance in this area is possible. In 2014 in the Xinjiang province multiple bombings took place. Extra safety
regulations are adjusted because of this. China is assessed with a GREEN score, which means score level
33
five Green - no limitations, safe travel area.
34
Sales tax & Import duty rate - China doesnt charge import duties and charges 17% sales tax. This leads to
score level four: No import duties. Sales tax >15%.
35
GDP Purchase Power Parity - The GDP PPP per resident of China is $13.200. Therefor China is assessed with
ranking score level three.
2. Mexico
36
Import restrictions: sanction country/high risk country - There are no restrictive measures applicable to
Mexico. Therefore Mexico is being assessed with score level five.
37
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Mexico is
approximately 11.000 kilometres. Therefore Mexico is being assessed with score level three.
38
Risk of disasters based on the World Risk Index - The WRI for Mexico is 6,23%. That means that Mexico is
being assessed with score level three.
Travel advice, risks and common sense - In the largest part of Mexico limited safety restrictions are active.
Hurricane damaged Mexicos infrastructure in some parts of the country. Especially in Colima, Jalisco and
Michoacn. In federal state Guerrero there is agitation due to the disappearance of 43 students in September
2014. A lot of demonstrations and confrontations with the police take place.
Federal state Tamaulipas is considered dangerous due to criminality and violence between rival (drugs) gangs.
In the border region between Mexico and USA there are safety regulations because of actions and criminality
through gangs. In other parts of Mexico people should take criminality in mind. Mexico is assessed with a light
39
orange score, which means score level three Many safety limitations, be aware while traveling in this area.
40
Sales tax & Import duty rate - Mexico doesnt charge import duties and Mexico charges 16% sales tax. This
leads to score level four: No import duties. Sales tax >15%.
41
GDP Purchase Power Parity - The GDP PPP per resident of Mexico is $18.000. Therefore Mexico is assessed
with ranking score level three.

28

"Import Restrictions China." BSCN.nl. Retrieved on 8 December 2015.
30
"Sanction countries." Riskworld.nl. Retrieved on 6 December 2015.
31
32
33
"Travel advice China." Rijksoverheid.nl. Retrieved on 9 December 2015.
34
35
36
37
38
39
"Travel advice Mexico." Rijksoverheid.nl. Retrieved on 9 December 2015.
40
41
29
3. Brazil
42
Import restrictions: sanction country/high risk country - There are no restrictive measures applicable to Brazil.
Therefore Brazil is being assessed with score level five.
43
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Brazil is
approximately 17000 kilometres. Therefore Brazil is being assessed with score level one.
44
Risk of disasters based on the World Risk Index - The WRI for Brazil is 4,21%. That means that Brazil is being
assessed with score level four.
Travel advice, risks and common sense - In whole of Brazil limited safety restrictions are aligned, mostly due to
criminality. Tourist areas are most dangerous. Also in bigger cities, such as Rio de Janeiro en Sao Paulo, often
45
demonstrations take place. Brazil is assessed with a YELLOW score, which means score level four Yellow:
some safety instructions, limited things to keep in mind while traveling in this area.
46
Sales tax & Import duty rate - Brazil charges 16% import taxes and the sales tax depends on the product in
Brazil. This leads to score level three: Import duties OR sales tax.
47
GDP Purchase Power Parity - The GDP PPP per resident of Brazil is $16.200. Therefore Brazil is assessed with
4. Malaysia
4849
- There are no restrictive measures applicable to
Malaysia. Therefore Malaysia is being assessed with score level five.
50
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Malaysia
is approximately 5000 kilometres. Therefore Malaysia is being assessed with score level four.
51
Risk of disasters based on the World Risk Index - The WRI for Malaysia is 6,44%. That means that Malaysia is
Travel advice, risks and common sense - In the biggest part of Malaysia no safety regulations are active. Only in
the eastern coast area Sabah and eastern islands safety regulations are active, due to common abductions of
tourists. The terrorist group Abu Sayaf, linked on ISIS, is possibly working on extending this area. Nevertheless
52
Malaysia is assessed with a GREEN score, which means score level five No limitations, safe travel area.
53
Sales tax & Import duty rate - Malaysia doesnt charge import duties and only charges 6% sales tax. This leads
to score level five: No import duties. Sales tax <15%.
54
GDP Purchase Power Parity - The GDP PPP per resident of Malaysia is $25.100. Therefore Malaysia is
assessed with ranking score level five.
5. Poland
5556
Poland. Therefore Poland is being assessed with score level five.
57
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Poland is
approximately 9000 kilometres. Therefore Poland is being assessed with score level three.
58
Risk of disasters based on the World Risk Index - The WRI for Poland is 3,27%. That means that Poland is
being assessed with score level five.

42

44
45
"Travel advice Brazil." Rijksoverheid.nl. Retrieved on 9 December 2015.
46
47
48
49
50
51
52
"Travel advice Malaysia." Rijksoverheid.nl. Retrieved on 9 December 2015.
53
54
55
56
57
58
43
98
Travel advice, risks and common sense - There are no safety regulations active in Poland. Therefore Poland is
59
being assessed with a GREEN score, which means score level five : Green: no limitations, safe travel area.
60
Sales tax & Import duty rate - Poland doesnt charge import duties and charges 23% sales tax. This leads to
score level three: Import duties OR sales tax.
61
GDP Purchase Power Parity - The GDP PPP per resident of Poland is $25.200. Therefore Poland is assessed
with ranking score level five.
6. Hungary
6263
Hungary. Therefore Hungary is being assessed with score level five: Neither a sanction country nor a highrisk country. No import restrictions.
64
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Hungary
is approximately 9000 kilometres. Therefore Hungary is being assessed with score level three.
65
Risk of disasters based on the World Risk Index - The WRI for Hungary is 5,41%. That means that Hungary is
being assessed with score level four.
Travel advice, risks and common sense - There are no safety regulations active in Hungary. The Hungarian
government might close borders due to huge groups of refugees trying to enter the country. Nevertheless
66
Hungary is being assessed with a GREEN score, which means score level five : Green: no limitations, safe
travel area.
67
Sales tax & Import duty rate - Hungary doesnt charge import duties and charges 27% sales tax. This leads to
68
GDP Purchase Power Parity - The GDP PPP per resident of Hungary is $25.000. Therefore Hungary is
7. Turkey
69
Turkey. Therefore Turkey is being assessed with score level five.
70
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Turkey is
approximately 9000 kilometres. Therefore Turkey is being assessed with score level three.
71
Risk of disasters based on the World Risk Index - The WRI for Turkey is 5,37%. That means that Turkey is
Travel advice, risks and common sense - In all of Turkey limited safety regulations are active. In Southeastern
regions in the border region with Syria and Iraq a Do-not-travel-restriction is set up and approximately 250
KM further inlands is a only if necessary travel area, due to the Syrian and Iraqi war. Therefore Turkey is
72
being assessed with a light orange score, which means score three : Many safety limitations, be aware while
traveling in this area.
73
Sales tax & Import duty rate - Turkey doesnt charge import duties and charges 18% sales tax. This leads to
74
GDP Purchase Power Parity - The GDP PPP per resident of China is $19.700. Therefore Turkey is assessed
with ranking score level four.

59
"Travel advice Poland." Rijksoverheid.nl. Retrieved on 9 December 2015.

61
62
63
64
65
66
"Travel advice Hungary." Rijksoverheid.nl. Retrieved on 9 December 2015.
67
68
69
70
71
72
"Travel advice Turkey." Rijksoverheid.nl. Retrieved on 9 December 2015.
73
74
60
8. Uruguay
75 76
Uruguay. Therefore Uruguay is being assessed with score level five: Neither a sanction country nor a highrisk country. No import restrictions.
77
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Uruguay
is approximately 19000 kilometres. Therefore Uruguay is being assessed with score level five.
78
Risk of disasters based on the World Risk Index - The WRI for Uruguay is 3,93%. That means that Uruguay is
Travel advice, risks and common sense - There are no safety regulations active in Uruguay. Therefore Uruguay
79
is being assessed with a GREEN score, which means score level five : No limitations, safe travel area.
80
Sales tax & Import duty rate - Uruguay doesnt charge import duties and charges 20% sales tax. This leads to
81
GDP Purchase Power Parity - The GDP PPP per resident of Uruguay is $21.100. Therefore Uruguay is
assessed with ranking score level four.
9. Russia
8283
- For Russia a whole lot import restrictions are in
force. The complete summary can be found on BSCN's website. A.o.t. an embargo on dual-use goods and
technology (if intended for military end-user and certain persons, entities and technology) is in force. This
import restriction will probably apply to Sony products, as Sony offers a broad range of technology products.
Russia is a sanction country. Therefore Russia is being assessed with score level one: Very much import
restrictions, also applies to Sony PMCs. Sanction country.
84
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Russia is
approximately 4000 kilometres. Therefore Russia is being assessed with score level four.
85
Risk of disasters based on the World Risk Index - The WRI for Russia is 3,84%. That means that Russia is being
Travel advice, risks and common sense - In all of Russia limited safety regulations are active. In Southwest
regions in the border region with Azerbaijan, Armenia and Georgia a Do-not-travel-restriction is set up and
approximately 500 kilometre further inlands is a only if necessary travel area. Criminality is daily business in
Russia and terrorists form a serious threat. Nevertheless Turkey is being assessed with a YELLOW score, which
86
means level four : Some safety instructions, limited things to keep in mind while traveling in this area.
87
Sales tax & Import duty rate - Russia doesnt charge import duties and charges 18% sales tax. This leads to
88
GDP Purchase Power Parity - The GDP PPP per resident of Russia is $24.400. Therefore Russia is assessed
with ranking score level five.

75

77
78
79
"Travel advice Uruguay." Rijksoverheid.nl. Retrieved on 9 December 2015.
80
81
82
83
84
85
86
"Travel advice Russia." Rijksoverheid.nl. Retrieved on 9 December 2015.
87
88
76
100
10. Belarus
8990
- For Belarus a lot import restrictions are in force. The
complete summary can be found on BSCN's website. The most important restrictive measure is the freezing of
funds and economic resources, which might lead to sober times. This import restriction will probably apply to
Sony products, as Sony offers a broad range of technology products. Belarus is a sanction country. Therefore
Belarus is being assessed with score level two.
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Belarus is
approximately 8000 kilometres. Therefore Belarus is being assessed with score level three.
91
Risk of disasters based on the World Risk Index - The WRI for Belarus is 3,07%. That means that Belarus is
Travel advice, risks and common sense - In all of Belarus limited safety regulations are active. Therefore Belarus
92
is being assessed with a YELLOW score, which means score level four : Yellow: some safety instructions,
limited things to keep in mind while traveling in this area.
93
Sales tax & Import duty rate - Belarus doesnt charge import duties and charges 20% sales tax. This leads to
94
GDP Purchase Power Parity - The GDP PPP per resident of Belarus is $18.200. Therefore Belarus is assessed
with ranking score level four.
11. Ukraine
9596
- For Ukraine a whole lot import restrictions are in
force. The complete summary can be found on BSCN's website. A.o.t. an embargo on dual-use goods and
technology, telecommunications and more. This import restriction will probably apply to Sony products, as
Sony offers a broad range of technology products. Ukraine is a sanction country. Therefore Ukraine is being
assessed with score level one: Very much import restrictions, also applies to Sony PMCs. Sanction country.
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Ukraine is
approximately 8000 kilometres. Therefore Ukraine is being assessed with score level three.
97
Risk of disasters based on the World Risk Index - The WRI for Ukraine is 3,09%. That means that Ukraine is
Travel advice, risks and common sense - In largest parts of Ukraine limited safety regulations are active.
Criminality is daily business in Ukraine. In border regions with Russia and also Crimea a do-not-travel-area is
active. In the province Kharkov an only-travel-if-necessary travel advice is active. Therefore Ukraine is being
98
assessed with a YELLOW score, which means score level four : Yellow: some safety instructions, limited
things to keep in mind while traveling in this area.
99
Sales tax & Import duty rate - Ukraine doesnt charge import duties and charges 20% sales tax. This leads to
100
GDP Purchase Power Parity - The GDP PPP per resident of Ukraine is $8.700. Therefore Ukraine is assessed
with ranking score level two.
12. Argentina
101102
Argentina. Therefore Argentina is being assessed with score level five: Neither a sanction country nor a highrisk country. No import restrictions.

89

91
92
"Travel advice Belarus." Rijksoverheid.nl. Retrieved on 9 December 2015.
93
94
95
96
97
98
"Travel advice Ukraine." Rijksoverheid.nl. Retrieved on 9 December 2015.
99
100
101
102
90
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Argentina
is approximately 18000 kilometres. Therefore Argentina is being assessed with score level one.
103
Risk of disasters based on the World Risk Index - The WRI for Argentina is 4,21%. That means that Argentina
is being assessed with score level four.
Travel advice, risks and common sense - In all of Argentina limited safety regulations are active. Criminality is
daily business in Argentina. Therefore Argentina is being assessed with a YELLOW score, which means score
104
level three : Yellow: some safety instructions, limited things to keep in mind while traveling in this area.
105
Sales tax & Import duty rate - Argentina charges 16% import taxes and charges 21% sales tax. This leads to
score level one: High import duties (>10%) and sales tax higher than 15%.
106
GDP Purchase Power Parity - The GDP PPP per resident of Argentina is $23.100. Therefore Argentina is
13. Colombia
107108
Colombia. Therefore Colombia is being assessed with score level five: Neither a sanction country nor a highrisk country. No import restrictions.
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Colombia
is approximately 14.000 kilometres. Therefore Colombia is being assessed with score level two.
109
Risk of disasters based on the World Risk Index - The WRI for Colombia is 6,72%. That means that Colombia
is being assessed with score level three.
Travel advice, risks and common sense - In large parts of Colombia a do-not-travel area is active. In adjacent
areas a only-if-necessary travel advice is active and in other parts of Colombia limited safety instructions are
active. Only in provinces Cundinamarca, Boyac, Caldas, Risaralda and islands Santa Catalina and San Andres
it is safe to travel. Although the safety measures are improved, heavy criminality and demonstrations still occur.
Armed gangs are active in the country and local media cannot be trusted. Therefore Colombia is being
110
assessed with a DARK ORANGE score, which means score level two : Only if necessary travel area.
111
Sales tax & Import duty rate - Colombia doesnt charge import duties and charges 16% sales tax. This leads
to score level four: No import duties. Sales tax >15%.
112
GDP Purchase Power Parity - The GDP PPP per resident of Colombia is $13.500. Therefore Colombia is
assessed with ranking score level three.
14. South Africa
113114
South Africa. Therefore South Africa is being assessed with score level five: Neither a sanction country nor a
high-risk country. No import restrictions.
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to South
Africa is approximately 14000 kilometres. Therefore South Africa is being assessed with score level two.
115
Risk of disasters based on the World Risk Index - The WRI for South Africa is 5,43%. That means that South
Africa is being assessed with score level four.
Travel advice, risks and common sense - In all of South Africa limited safety regulations are active. The
countrys situation is stressed and various violence events are take place against foreign people. Therefore
116
South Africa is being assessed with a YELLOW score, which means score level four : Yellow: some safety
instructions, limited things to keep in mind while traveling in this area.

103

"Travel advice Argentina." Rijksoverheid.nl. Retrieved on 9 December 2015.
105
106
107
108
109
110
"Travel advice Colombia." Rijksoverheid.nl. Retrieved on 9 December 2015.
111
112
113
114
115
116
"Travel advice South Africa." Rijksoverheid.nl. Retrieved on 9 December 2015.
104
102
117
Sales tax & Import duty rate - South Africa doesnt charge import duties and charges 14% sales tax. This
leads to score level three: Import duties OR sales tax.
118
GDP Purchase Power Parity - The GDP PPP per resident of South Africa is $13.100. Therefore South Africa is
assessed with ranking score level three.
15. Indonesia
119
Indonesia. Nevertheless Indonesia is a so-called high risk country. Companies active in a high-risk country
120
are taking the risk to break human rights . Therefore Indonesia is being assessed with score level three: A
single restriction, also applies to Sony PMCs. (Or only a) High-risk country.
121
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to
Indonesia is approximately 5000 kilometres. Therefore Indonesia is being assessed with score level four.
122
Risk of disasters based on the World Risk Index - The WRI for Indonesia is 6,44%. That means that Indonesia
is being assessed with score level three.
Travel advice, risks and common sense - In all of Indonesia limited safety regulations are active. Serious air
pollution is a major problem in this country. Especially in provinces Riau (Sumatra) and West + Central
Kalimantal (Boneo) this occurs. Air traffic around Bali suffers from a volcanic eruption on Eastern Java.
123
Therefore Indonesia is being assessed with a YELLOW score, which means score level four : Yellow: some
safety instructions, limited things to keep in mind while traveling in this area.
124
Sales tax & Import duty rate - Indonesia doesnt charge import duties and charges 10% sales tax. This leads
to score level three: Import duties OR sales tax.
125
GDP Purchase Power Parity - The GDP PPP per resident of Indonesia is $10.700. Therefor Indonesia is
assessed with ranking score level two.
16. Chile
126127
Chile. Therefore Chile is being assessed with score level five.
128
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Chile is
approximately 17000 kilometres. Therefore Chile is being assessed with score level one.
129
Risk of disasters based on the World Risk Index - The WRI for Chile is 11,20%. That means that Chile is being
assessed with score level one.
Travel advice, risks and common sense - In all of Chile limited safety regulations are active due to a high level
of criminality and serious threat of natural disasters. Therefore Chile is being assessed with a yellow score,
130
which means score four : Some safety instructions, limited things to keep in mind.
131
Sales tax & Import duty rate - Chile charges 6% import duties and charges 19% sales tax. This leads to score
level two: Import duties (<10%) and sales tax (>10%).
132
GDP Purchase Power Parity - The GDP PPP per resident of Chile is $23.100. Therefore Chile is assessed with
ranking score level five.

117

119
120
121
122
123
"Travel advice Indonesia." Rijksoverheid.nl. Retrieved on 9 December 2015.
124
125
126
127
128
129
130
"Travel advice Chile." Rijksoverheid.nl. Retrieved on 9 December 2015.
131
132
118
17. Vietnam
133134
Vietnam. Therefore Vietnam is being assessed with score level five.
135
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Vietnam
is approximately 4000 kilometres. Therefore Vietnam is being assessed with score level four.
136
Risk of disasters based on the World Risk Index - The WRI for Vietnam is 12,89%. That means that Vietnam is
being assessed with score level one.
Travel advice, risks and common sense - In all of Vietnam limited safety regulations are active due to the bad
road safety and high level of criminality. Therefore Vietnam is being assessed with a YELLOW score, which
137
means score four : Some safety instructions, limited things to keep in mind while traveling in this area.
138
Sales tax & Import duty rate - Vietnam doesnt charge import duties and charges 10% sales tax. This leads to
139
GDP Purchase Power Parity - The GDP PPP per resident of Vietnam is $5.700. Therefore Vietnam is assessed
with ranking score level one.
18. India
140141
India. Nevertheless India is a so-called high risk country. Companies active in a high-risk country are taking
142
the risk to break human rights . Therefore India is being assessed with score level three: A single
restriction, also applies to Sony PMCs. (Or only a) High-risk country.
143
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to India is
approximately 6000 kilometres. Therefore India is being assessed with score level four.
144
Risk of disasters based on the World Risk Index - The WRI for India is 6,88%. That means that India is being
assessed with score level three.
Travel advice, risks and common sense - In largest parts of India limited safety regulations are active. In
Pakistani border region a do-not-travel advice is active. The country suffers from heavy rains in the rain
season, which majorly influences daily life and welfare of the country. Also comprehensive demonstrations and
145
big cities will occur. Therefore India is being assessed with a YELLOW score, which means score level four :
Yellow: some safety instructions, limited things to keep in mind while traveling in this area.
146
Sales tax & Import duty rate - India doesnt charge import duties. India doesnt charge sales tax as well, but
charges an additional fee for every imported item. This leads to score level three: Import duties OR sales tax.
147
GDP Purchase Power Parity - The GDP PPP per resident of India is $5.800. Therefore India is assessed with
ranking score level one.

133

135
136
137
"Travel advice Vietnam." Rijksoverheid.nl. Retrieved on 9 December 2015.
138
139
140
141
142
143
144
145
"Travel advice India." Rijksoverheid.nl. Retrieved on 9 December 2015.
146
147
134
104
19. Egypt
148149
- The restrictive measure that is applied to Egypt is
150
the freezing of funds and economic resources . This import restriction probably wont apply to Sony
products, but it might form a restriction due to the fact that funds and economic resources are frozen. Egypt is
a sanction country. Therefore Egypt is being assessed with score level two: Some import restrictions, which
do not specifically apply to Sony PMCs. Sanction country.
151
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Egypt is
approximately 10000 kilometres. Therefore Egypt is being assessed with score level three.
152
Risk of disasters based on the World Risk Index - The WRI for Egypt is 2,26%. That means that Egypt is being
assessed with score level five.
Travel advice, risks and common sense - In all of Egypt safety restrictions are active. Indications point out that
the Sharm-el-Sheikh airport not safe is. All over the country there is a serious threat of terrorists bombings.
153
Therefore Egypt is being assessed with a DARK ORANGE score, which means score level two : Dark
orange: only if necessary travel area.
154
Sales tax & Import duty rate - The import and sales taxes in Egypt are unknown. This leads to score level
one, because we couldnt estimate how much it will be.
155
GDP Purchase Power Parity - The GDP PPP per resident of Egypt is $10.900. Therefore Egypt is assessed
with ranking score level two.
20. Iran
156157
- For Iran a whole lot import restrictions are in force.
The complete summary can be found on BSCN's website. The most important restrictive measure is the
freezing of funds and economic resources, which might lead to sober times and the embargo on
telecommunications and other technological equipment. This import restriction will probably apply to Sony
products, as Sony offers a broad range of technology products. Iran is a sanction country. Therefore Iran is
being assessed with score level one: Very much import restrictions, also applies to Sony PMCs. Sanction
country.
158
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Iran is
approximately 8000 kilometres. Therefore Iran is being assessed with score level three.
159
Risk of disasters based on the World Risk Index - The WRI for Iran is 4,83%. That means that Iran is being
Travel advice, risks and common sense - In largest parts of Iran limited safety regulations are active. In border
regions with Afghanistan, Pakistan and Iraq a do-not-travel area is active. Also in province Khuzestan this
advice is applicable. Despite an agreement concerning the Iranian nuclear program, political tensions still
160
occur. Therefore Iran is being assessed with a DARK ORANGE score, which means score level two : Dark
orange: only if necessary travel area.
161
Sales tax & Import duty rate - Iran charges 6% import duties and charges 8% sales tax. This leads to score
level two: Import duties (<10%) and sales tax.
162
GDP Purchase Power Parity - The GDP PPP per resident of Iran is $17.400. Therefore Iran is assessed with

148

150
"Import Restrictions Belarus." BSCN.nl. Retrieved on 8 December 2015.
151
152
153
"Travel advice Egypt." Rijksoverheid.nl. Retrieved on 9 December 2015.
154
155
156
157
158
159
160
"Travel advice Iran." Rijksoverheid.nl. Retrieved on 9 December 2015.
161
162
149
21. Pakistan
163164
Pakistan. Nevertheless Pakistan is a so-called high risk country. Companies active in a high-risk country are
165
taking the risk to break human rights . Therefore Pakistan is being assessed with score level three: A single
166
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Pakistan
is approximately 7000 kilometres. Therefore Pakistan is being assessed with score level four.
167
Risk of disasters based on the World Risk Index - The WRI for Pakistan is 7,03%. That means that Pakistan is
Travel advice, risks and common sense - In all of Pakistan major safety restrictions are active. Half of the
country, the border region with Afghanistan and Iran up to 250 or 500 kilometre further inlands a do-nottravel advice is active. In the other half a travel-only-if-necessary advice is active. Only in Islamabad, a small
area around Leh and Lahore limited safety instructions are available. These areas are relatively safe in
comparison to other parts of the country. Abductions, criminality, terrorism and a low level of healthcare in a
country in state of war are daily business. Therefore Pakistan is being assessed with a RED score, which means
168
score level one : Red: do not travel area.
169
Sales tax & Import duty rate - Pakistan doesnt charge a percentage as import duty, but charges Rs250 per
item. This is about three USD. Pakistan charges 17% sales tax. This leads to score level two: Import duties
(<10%) and sales tax.
170
GDP Purchase Power Parity - The GDP PPP per resident of Pakistan is $4.700. Therefore Pakistan is assessed
22. Iraq
171172
- For Iraq a lot import restrictions are in force. The
complete summary can be found on BSCN's website. The most important restrictive measure is the freezing of
funds and economic resources, which might lead to sober times. This import restriction will probably apply to
Sony products, as the economic resources and funds are frozen. Iran is a sanction country. Therefore Iran is
being assessed with score one: Very much import restrictions, also applies to Sony PMCs. Sanction country.
173
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Iraq is
approximately 8000 kilometres. Therefore Iraq is being assessed with score level three.
174
Risk of disasters based on the World Risk Index - The WRI for Iraq is 4,76%. That means that Iraq is being
Travel advice, risks and common sense - In all of Iraq major safety restrictions are active. Half of the country, the
border region with Syria, partly Saudi-Arabia and Turkey - up to 250 or 500 kilometre further inlands a donot-travel advice is active. In the other half a travel-only-if-necessary advice is active. The country is in state of
175
war. Therefore Iraq is being assessed with a RED score, which means score level one : Do not travel area.
176
Sales tax & Import duty rate - The import taxes and sales duties in Iraq are unknown. This leads to score
level one because we couldnt estimate the actual costs of importing goods to Iraq.
177
GDP Purchase Power Parity - The GDP PPP per resident of Iraq is $15.300. Therefore Iraq is assessed with

163

165
166
167
168
"Travel advice Pakistan." Rijksoverheid.nl. Retrieved on 9 December 2015.
169
170
171
172
173
174
175
"Travel advice Iraq." Rijksoverheid.nl. Retrieved on 9 December 2015.
176
177
164
106
23. Nigeria
178179
Nigeria. Nevertheless Nigeria is a so-called high risk country. Companies active in a high-risk country are
180
taking the risk to break human rights . Therefore Nigeria is being assessed with score level three: A single
181
Actual distance from Japan - The actual distance from Japan rounded to the nearest thousand to Nigeria
is approximately 13000 kilometres. Therefore Nigeria is being assessed with score level two.
182
Risk of disasters based on the World Risk Index - The WRI for Nigeria is 8,12%. That means that Nigeria is
being assessed with score level two.
Travel advice, risks and common sense - In all of Nigeria limited safety regulations are active. In other parts of
the country do-not-travel area are active OR a travel-only-if-necessary advice. There is a serious threat of
terrorism from the Boko Haram group. Bombings, criminality, traffic safety and other political tensions lead to a
decreased level of safety in this country. Therefore Nigeria is being assessed with a DARK ORANGE score,
183
which means score level two : Dark orange: only if necessary travel area.
184
Sales tax & Import duty rate - Nigeria charges 5% import duties and charges 5% sales tax. This leads to score
level two: Import duties (<10%) and sales tax.
185
GDP Purchase Power Parity - The GDP PPP per resident of Nigeria is $6.100. Therefore Nigeria is assessed

178

180
181
182
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"Travel advice Nigeria." Rijksoverheid.nl. Retrieved on 9 December 2015.
184
185
179
IV. PRE-FILTER ANALYSIS EXCEL
108
V. OVERALL RANKINGS PRE-FILTER ANALYSIS

VI. ROUGH SCAN THE CRITERIA

186
Impact of decreasing/increasing inflation rates

Many governments have a target for a low but positive rate of inflation. They believe that persistently high inflation
can have damaging economic and social consequences.
- Income redistribution: one risk of higher inflation is that it has a regressive effect on lower-income families and
older people in society.
- Falling real incomes: With millions of people facing a cut in their wages or at best a pay freeze, rising inflation
leads to a fall in real incomes.
- Negative real interest rates: If interest rates on savings accounts are lower than inflation, people who rely on
interest from their savings will be poorer.
- Cost of borrowing: High inflation may also lead to higher interest rates for business and people needing loans
and mortgages as financial markets protect themselves against rising prices and increase the cost of borrowing
on short and longer-term debt.
- Risk of wage inflation: High inflation can lead to an increase in pay claims as people look to protect their real
incomes. This can also lead to business competitiveness: If one country has much higher rate of inflation than
others for a considerable period of time, this will make its exports less price competitive in world markets.
- Business uncertainty: High and volatile inflation is not good for business confidence partly because they cannot
be sure of what their costs and prices are likely to be. This uncertainty might lead to a lower level of capital
investment spending.
Inflation rate (weight 0,20)
Score 1:
higher than 35%
Score 2:
between 25% and 35%
Score 3:
between 15% and 25%
Score 4:
between 5% and 15%
Score 5:
between minus 10 and plus 5%
Political Stability by The Global Innovation Index 2015
The Political environment sub-pillar as a part of The Global Innovation Index 2015 includes three indices that
reflect perceptions of the likelihood that a government might be destabilized; the quality of public and civil
187
services, policy formulation, and implementation . The higher the percentage, the better the political stability.
Political Stability Index (weight 0,15)
Score 1:
between 0% and 20%.
Score 2:
between 21% and 40%.
Score 3:
Score 4:
Score 5:
Gross National Income per Capital PPP in USD
GNI per capita based on purchasing power parity (PPP). PPP GNI is gross national income (GNI) converted to
international dollars using purchasing power parity rates. An international dollar has the same purchasing power
over GNI as a U.S. dollar has in the United States. GNI is the sum of value added by all resident producers plus any
product taxes (less subsidies) not included in the valuation of output plus net receipt of primary income
(compensation of employees and property income) from abroad. Data are in current international dollars based on
188
the 2011 ICP round .

186
"Consequences of Inflation.". Retrieved on 7 December 2015.

"Political Stability." The Global Innovation Index. Retrieved on 6 December 2015.
188
"Gross National Income per Capita, PPP." The World Bank. Retrieved on 7 December 2015.
187
110
Gross National Income Purchasing Power Parity per Capita in USD (weight 0,10)
Score 1:
less than $5.000 GNI per Capita, PPP.
Score 2:
between $5.001 and $10.000 GNI per Capita, PPP.
Score 3:
Score 4:
Score 5:
from $20.001 and higher GNI per Capita, PPP.
Trade relation between Japan and the other country
The buying and selling of goods and services across national borders is known as international trade. International
trade is the backbone of our modern, commercial world, as producers in various nations try to profit from an
expanded market, rather than be limited to selling within their own borders. There are many reasons that trade
across national borders occurs, including lower production costs in one region versus another, specialized
industries, lack or surplus of natural resources and consumer tastes.
In order to do this and create an interesting and above all lucrative foreign market, it is essential to build a strong
relationship between other countries. Technology enables us to do business abroad. Additional agreements
between two countries for example a bilateral agreement - is important to build relationships. Sometimes, due to
the past, countries arent able or willing to cooperate. In other cases, countries have a very strong relationship
due to the past and agreements made. The level of the relationship even if they consider each other enemies, it is
a kind of a relationship is expressed on a five-point scale.
Trade relation between Japan and [country] (weight 0,20)
Score 1:
-- no relationship at all, countries consider each other enemies.
Score 2:
- no, or a disrupted relationship. Business is not recommended.
Score 3:
0 = average. Relationship could be better, but worse too. Further research necessary.
Score 4:
+ good, stable relationship. Probably part of same international organisation and do business.
Score 5:
++ very good and stable relationship. It is a MFC and sometime there is an EPA or
Population size
Trading globally gives consumers and the opportunity to be exposed to new markets and products. An extended
population creates a bigger market to operate in. For example, in our equation Uruguay, Hungary and Belarus
have an almost fifty times smaller population. The consequence is a smaller area to work in and thereby less
chance to gain enough marketshare.
Population size (weight 0,20)
Score 1:
less than 25 million
Score 2:
between 25 million and 75 million
Score 3:
Score 4:
Score 5:
175 million and more
Exports play an important role in the economy, influencing the level of economic growth, employment and the
balance of payments. Lower transport costs, globalisation, economies of scale and reduced tariff barriers have all
helped exports become a bigger share of national income in the post war period. Competitiveness, quality and
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value added of exports, the exchange rate and a long-run productivity determines the level of exports .
Exports in Millions USD (weight 0,05)
Score 1:
less than $100.000
Score 2:
$100.000 till $200.000
Score 3:
$200.000 till $300.000
Score 4:
$300.000 till $400.000
Score 5:
$400.000 and higher

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"Importance of exports to the economy." Economicshelp.org. Retrieved on 7 December 2015.

Aside from factors such as interest rates and inflation, the exchange rate is one of the most important determinants
of a countrys relative level of economic health. Exchange rates play a vital role in a countrys level of trade, which is
critical to most every free market economy in the world. For this reason, exchange rates are among the most
watched, analysed and governmentally manipulated economic measures. But exchange rates matter on a smaller
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scale as well: they impact the real return of an investors portfolio .
NOTE: these marks might deviate a little from the current rates. The exchange rates in percentages on yearly-basis
are an average deficit over the whole trade cycle and not the deficit at on particular moment. The data is found on
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the 9 of December 2015.
Exchange rates yearly in percentages (weight 0,10)
Score 1:
60% and higher
Score 2:
45% till 60%
Score 3:
30% till 45%
Score 4:
15% till 30%
Score 5:
lower than 15%

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"Exchange rates." Investopedia.com. Retrieved on 7 December 2015.
112
VII. COUNTRY PROFILES ROUGH SCAN

1. China
Political Stability Index - China is being assessed with 44% political stability. By way of comparison, Finland
scores a 100% review and Japan 89%. Therefore China is reviewed with ranking score level three.
Trade relation between Japan and China - These two counties are geographically separated by the East China
Sea. The relationship between China and Japan has been strained at times by Japans refusal to acknowledge
its wartime past to satisfaction of China. Sino-Japanese relations warmed considerably after Shinzo Abe
became the Prime Minister of Japan in September 2006.
There has been increasingly large mutual dislike, hatred, and hostility between Japanese and Chinese people
in recent years. According to a 2014 BBC World Service Poll, 3% of Japanese people view Chinas influence
positively, with 73% expressing a negative view, the most negative perception of China in the world, while 5%
of Chinese people view Japanese influence positively, with 90% expressing a negative view, the most negative
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perception of Japan in the world . Based on these information we review the relationship between Japan on
a scale of one (--) to five (++) with three (average). The relationship between the two countries could be
better, due to the past, but could be worse too when Shinzo Abe didnt become president in 2006.
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Gross National Income PPP per capita in USD - The GNI PPP per capita in USD in China is $11.850 . China is
assessed with ranking score level three: between $10.001 and $15.000 GNI per Capita, PPP.
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Inflation rate - Chinas inflation rate for 2014 is +2% . This means that China is being ranked on score level
five: between minus 10 and plus 5%.
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Population size - Chinas amount of residents is 1.367.485.388 . That means that China is assessed with
ranking score level five.
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Exports in millions USD - China exports for $2.343.000,00 Million every year . In other words, China
achieves a ranking score five: $400.000 Million and higher. This is more than all the countries in the
European Union together. With this, China is on the first place of all countries in the world in total exported
products and services!
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Exchange rates yearly in percentages - Chinas exchange rate is 5,2%. This means that China is assessed for
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ranking score level five: lower than 15% .
2. Mexico
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Political Stability Index - Mexico is being assessed with 46% political stability. By way of comparison, Finland
scores a 100% review and Japan 89%. This leads to ranking score level three.
Trade relation between Japan and Mexico - Japan-Mexico relations refer to the diplomatic relations between
Japan and Mexico. Both nations are members of the Asia-Pacific Economic Cooperation, G-20 major
economies, Organisation for Economic Co-operation and Development and the United Nations. In past
centuries, both countries have been working on a strong relationship.
In April 2005, Japan and Mexico signed a free trade agreement. Since then the trade between the two nations
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increased dramatically. In 2014, trade between the two nations amounted to $20 billion USD . Most of the
trade is in agricultural products, alcohol and automobile parts. Between 2005-2012, Japanese companies
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invested over $12 billion USD in Mexico, mainly in the automobile industries .
Based on these data, the relationship between Mexico and Japan can be assessed with ranking score level
five: ++ very good and stable relationship. It is a Most Favoured Country and sometimes a FTA and/or EPA.

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200
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"Relations China-Japan." BBC World Service Poll. Retrieved on 13 December 2015.

"Inflation Rates China." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
"Population." CIA, World Fact Book. Retrieved on 10 December 2015.
"Exports countries worldwide." CIA.gov. World Fact Book. Retrieved on 13 December 2015.
"Exchange rates worldwide." Trading Economics. Retrieved on 9 December 2015.
"Political Stability." The Global Innovation Index. Select case: 1.1. Political environment. Retrieved on 6 December 2015.
"Mexican Ministry of the Economy: Japan (in Spanish)." Gob.mx. Retrieved on 16 December 2015.
"Japan-Mexico relations." Wikipedia.org. Retrieved on 16 December 2015.
202
Gross National Income PPP per capita in USD - The GNI PPP per capita in USD in Mexico is $16.110 . Mexico
is assessed with ranking score level four: between $15.001 and $20.000 GNI per Capita, PPP.
203
Inflation rate - Mexicos inflation rate for 2014 is +4% . This means that Mexico is being ranked on score level
five: between minus 10 and plus 5%.
Population size - Trading globally gives consumers and the opportunity to be exposed to new markets and
products. An extended population creates a bigger market to operate in. Mexicos amount of residents is
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121.736.728 . That means that Mexico is assessed with ranking score level three.
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206
Exports in millions USD - Mexico exports for $398.300 Million every year . In other words, Mexico achieves
a ranking score four: between $300.000 Million till $400.000 Million. With this, Mexico is on the fifteenth
place of all countries in the world.
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Exchange rates yearly in percentages - Mexicos exchange rate is 17%. This means that Mexico is assessed
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for ranking score level four: 15% till 30% .
3. Brazil
Political Stability Index - Brazil is being assessed with 47% political stability. By way of comparison, Finland
scores a 100% review and Japan 89%. Therefore Brazil is reviewed with ranking score level three.
Trade relation between Japan and Brazil - Brazil-Japan relations refer to the bilateral relationship of Brazil and
Japan. Japan first established diplomatic relations with Brazil in 1895. Japan used foreign aid to promote its
trade with Brazil after World War II. Direct investment was used to develop business in Brazil. More Japanese
emigrants are found in Brazil than in any other country, giving Japanese Brazilians a significant demographic
presence in Brazil. According to a 2013 BBC World Service Poll, 71% of Brazilians view Japans influence
positively, with only 10% expressive a negative view, making Brazil one of the most pro-Japanese nations in the
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world .
210
Gross National Income PPP per capita in USD - The GNI PPP per capita in USD in Brazil is $14.750 . Brazil is
assessed with ranking score level three: between $10.001 and $15.000 GNI per Capita, PPP.
211
Inflation rate - Brazils inflation rate for 2014 is +6,3% . This means that Brazil is being ranked on score level
four: between plus 5% and +15%.
products. An extended population creates a bigger market to operate in. Brazils amount of residents is
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204.259.812 . That means that Brazil is assessed with ranking score level five.
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214
Exports in millions USD - Brazil exports for $224.600 Million every year . In other words, Brazil achieves a
ranking score three: between $200.000 Million till $300.000 Million. With this, Brazil is on the twenty-sixth
place of all countries in the world.
215
Exchange rates yearly in percentages - Brazils exchange rate is 44,1%. This means that Brazil is assessed for
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ranking score level three: 30% till 45% .
4. Malaysia
217
Political Stability Index - Malaysia is being assessed with 71% political stability. By way of comparison,
Finland scores a 100% review and Japan 89%. Therefore Malaysia is reviewed with ranking score level four.
Trade relation between Japan and Malaysia - Japan-Malaysia relations refer to bilateral foreign relations
between the two countries, Japan and Malaysia. The earliest recorded historical relations between the two

202
"Inflation Rates Mexico." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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205
206
207
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"Trade relationship Japan - Brazil." Wikipedia.org. Retrieved on 16 December 2015.
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"Inflation Rates Brazil." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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nations are the trade relations between the Malacca Sultinate and the Ryukyu Kingdom in the 15 century. This
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continued well into the 20 century with the rise of the Empire of Japan and its subsequent invasion and
occupation of British Malaya during World War II. The total trade between Malaysia and Japan in 2011 was at
RM145.3 billion (about 42 billion USD) with RM 80 billion contributed by exports from Malaysia to Japan, while
imports from Japan amounted to RM65.3 billion. There are about 1400 Japanese companies operating in
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Malaysia, creating more than 11.000 job opportunities . Based on these data, the relationship between
Mexico and Japan can be assessed with ranking score level four: + good, stable relationship. Probably the
countries are part of the same international organisation and they already do business together.
219
Gross National Income PPP per capita in USD - The GNI PPP per capita in USD in Malaysia is $22.530 .
Malaysia is assessed with ranking score level five: from $20.001 and higher GNI per Capita, PPP.
220
Inflation rate - Malaysias inflation rate for 2014 is +3,10% . This means that Malaysia is being ranked on score
level five: between minus 10 and plus 5%.
products. An extended population creates a bigger market to operate in. Malaysias amount of residents is
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30.513.848 . That means that Malaysia is assessed with ranking score level two.
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223
Exports in millions USD - Malaysia exports for $224.900 Million every year . In other words, Malaysia
achieves a ranking score three: between $200.000 Million till $300.000 Million. With this, Malaysia is on the
twenty-fourth place of all countries in the world.
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Exchange rates yearly in percentages - Malaysias exchange rate is 23,20%. This means that Malaysia is
225
assessed for ranking score level four: 15% till 30% .
5. Poland
226
Political Stability Index - Poland is being assessed with 76% political stability. By way of comparison, Finland
scores a 100% review and Japan 89%. Therefore Poland is reviewed with ranking score level four.
Trade relation between Japan and Poland Japan and Poland established diplomatic relations on March 22,
1919, which were severed after the outbreak of World War II. On February 9, 1957, the diplomatic relations
between Japan and Poland were restored. Since democratization of Poland in 1989, bilateral relations
between Japan and Poland have been dynamically developing in a variety of fields, including political,
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economic, science, technology and cultural areas . Based on these data, the relationship between Poland
and Japan can be assessed with ranking score level three: 0 = average. Relationship could be better, but
worse too. Further research necessary if you decide to do business with or in this country.
228
Gross National Income PPP per capita in USD - The GNI PPP per capita in USD in Poland is $22.790 . Poland
is assessed with ranking score level five: from $20.0001 and higher GNI per Capita, PPP.
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Inflation rate - Polands inflation rate for 2014 is 0% . This means that Poland is being ranked on fifth place.
products. An extended population creates a bigger market to operate in. Polands amount of residents is
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38.562.189 . That means that Poland is assessed with ranking score level two.
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Exports in millions USD - Poland exports for $210.700 Million every year . In other words, Poland achieves
a ranking score three: between $200.000 Million till $300.000 Million. With this, Poland is on the twentyseventh place of all countries in the world.
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Exchange rates yearly in percentages - Polands exchange rate is 18,7%. This means that Poland is assessed
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"Japan - Malaysia relations." Wikipedia.org. Retrieved on 16 December 2015.

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"Inflation Rates Malaysia." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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"Relation between Japan and Poland." Ministry of Foreign Affairs of Japan. Retrieved on 6 December 2015.
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"Inflation Rates Poland." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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6. Hungary
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Political Stability Index - Hungary is being assessed with 74% political stability. By way of comparison,
Finland scores a 100% review and Japan 89%. Therefore Hungary is reviewed with ranking score level four.
Trade relation between Japan and Hungary Hungary, whose people are ethnically related to Asia, has
traditionally been friendly to Japan. For a period after the end of the Second World War, diplomatic relations
between Hungary and Japan were severed due to the impact of the Cold War, but diplomatic relations were
resumed with the exchange of official documents in August 1959 recognizing the restoration of relations
between the two countries. In 1960, both countries established diplomatic representations in others country,
and in June 1964, these legations were raised to the embassy level. Since the Hungarian economys transition,
Japan has been positively extending assistance to Hungary, and bilateral relations between the two countries
have been progressing.
Since 1991, Japanese exports to Hungary exceeded imports from that country. In 2013, with exports from
Japan increasing by 1.18% over the previous year to 128.7 billion yen, and imports increasing by 1.16% to 83.7
billion yen, Japans trade surplus with Hungary reached 45 billion yen. The main Japanese exports have been
electrical and electric equipment, automobile parts and power generation equipment. The main imports, office
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equipment, power generation equipment and pork . Based on these data, the relationship between Hungary
and Japan can be assessed with ranking score level four: + good, stable relationship. Probably the countries
are part of the same international organization and they already do business together.
237
Gross National Income PPP per capita in USD - The GNI PPP per capita in USD in Hungary is $22.800 .
Hungary is assessed with ranking score level five: from $20.0001 and higher GNI per Capita, PPP.
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Inflation rate - Hungarys inflation rate for 2014 is -0,20% . This means that Hungary is being ranked on score
level five: between minus 10 and plus 5%.
products. An extended population creates a bigger market to operate in. Hungarys amount of residents is
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9.897.541 . That means that Hungary is assessed with ranking score level one.
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Exports in millions USD - Hungary exports for $100.000 Million every year . In other words, Hungary
achieves a ranking score two: between $100.000 Million till $200.000 Million. With this, Hungary is on the
thirty-ninth place of all countries in the world.
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Exchange rates yearly in percentages - Hungarys exchange rate is 16,5%. This means that Hungary is
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7. Turkey
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Political Stability Index - Turkey is being assessed with 38% political stability. By way of comparison, Finland
scores a 100% review and Japan 89%. Therefore Turkey is reviewed with ranking score level two.
Trade relation between Japan and Turkey Japan and the Republic of Turkey have maintained good relations
for over a century. There has been wide-ranging interaction between the two countries, including visits by
eminent persons, as well as economic and cultural exchange. Both countries have a strategic partnership
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together in the field of nuclear energy, science and technology. The friendly relations reached its 120
245
anniversary in 2010 . Based on these data, the relationship between Turkey and Japan can be assessed with
ranking score level four: + good, stable relationship. Probably the countries are part of the same
international organisations and they already do business together.
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Gross National Income PPP per capita in USD - The GNI PPP per capita in USD in Turkey is $18.800 . Turkey is
assessed with ranking score level four: between $15.001 and $20.000 GNI per Capita, PPP.

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"Relation between Japan and Hungary." Ministry of Foreign Affairs of Japan. Retrieved on 16 December 2015.
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"Inflation Rates Hungary." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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"Relationship between Japan and Turkey." Ministry of Forreign Affair of Japan. Retrieved on 15 December 2015.
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Inflation rate - Turkeys inflation rate for 2014 is +8,90% . This means that Turkey is being ranked on score
level four: between +5% and +15%.
products. An extended population creates a bigger market to operate in. Turkeys amount of residents is
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79.414.269 . That means that Turkey is assessed with ranking score level three.
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Exports in millions USD - Turkey exports for $168.900 Million every year . In other words, Turkey achieves a
ranking score two. With this, Turkey is on the thirty-first place of all countries in the world.
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Exchange rates yearly in percentages - Turkeys exchange rate is 29,1%. This means that Turkey is assessed
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8. Uruguay
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Political Stability Index - Uruguay is being assessed with 70% political stability. By way of comparison,
Finland scores a 100% review and Japan 89%. Therefore Uruguay is being assessed with score level four.
Trade relation between Japan and Uruguay Japan-Uruguay relations are foreign relations between Japan
and Uruguay. Both countries established diplomatic relations in 1921. Japan has an embassy in Montevideo
and Uruguay has an embassy in Tokyo. The bilateral relations were suspended during World War II, but
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restored in 1952 . Based on these data, the relationship between Uruguay and Japan can be assessed with
ranking score level four: good, stable relationship. Probably the countries are part of the same international
organisation and they already do business together.
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Gross National Income PPP per capita in USD - The GNI PPP per capita in USD in Uruguay is $18.940 .
Uruguay is assessed with ranking score level four: between $15.001 and $20.000 GNI per Capita, PPP.
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Inflation rate - Uruguays inflation rate for 2014 is +8,90% . This means that Uruguay is being ranked on score
level four: between plus 5% and plus 15%.
products. An extended population creates a bigger market to operate in. Uruguays amount of residents is
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3.341.893 . That means that Uruguay is assessed with ranking score level one.
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- Uruguay exports for $10.380 Million every year . In other words, Uruguay
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achieves a ranking score one. With this, Uruguay is on the 95 place of all countries worldwide.
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Exchange rates yearly in percentages - Uruguays exchange rate is 26,1%. This means that Uruguay is
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9. Russia
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Political Stability Index - Russia is being assessed with 26% political stability. By way of comparison, Finland
scores a 100% review and Japan 89%. Therefore Russia is being assessed with score level two.
Trade relation between Japan and Russia Relations between Russia and Japan are a continuation of relations
in the past. The two countries have been unable to sign a peace treaty after World War II due to the Kuril
Islands dispute. As of 2015 matters remain unsolved, and these disputes have effectively soured relations
between the two countries. According to a 2012 Pew Global Attitudes Project survey, 72% of Japanese people
view Russia unfavourably, compared with 22% who viewed it favourably, making Japan the country with the

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"Inflation Rates Hungary." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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"Relations between Japan and Uruguay." Ministry of Forreign Affair of Japan. Retrieved on 16 December 2015.
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"Inflation Rates Uruguay." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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most anti-Russian sentiment surveyed . Based on these data, the relationship between Russia and Japan can
be assessed with ranking score level one: No relationship al all, countries consider each other enemies.
264
Gross National Income PPP per capita in USD - The GNI PPP per capita in USD in Russia is $23.190 . Russia is
assessed with ranking score level five: from $20.0001 and higher GNI per Capita, PPP.
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Inflation rate - Russias inflation rate for 2014 is +7,80% . This means Russia is being ranked on score four.
products. An extended population creates a bigger market to operate in. Russias amount of residents is
266
142.423.773 . That means that Russia is assessed with ranking score level four.
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Exports in millions USD - Russia exports for $497.800 Million every year . In other words, Russia achieves a
ranking score five: $400.000 and higher. With this, Russia is on the 11th place of all countries in the world.
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Exchange rates yearly in percentages - Russias exchange rate is 29,4%. This means that Russia is assessed
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10. Belarus
270
Political Stability Index - Belarus is being assessed with 29% political stability. By way of comparison, Finland
scores a 100% review and Japan 89%. Therefore Belarus is being assessed with score level two.
Trade relation between Japan and Belarus The Byelorussian SSR was one of the only two Soviet republics to
be separate members of the United Nations. Both republics and the Soviet Union joined the UN when the
organization was founded in 1945. Belarus gained its independence after the dissolution of the Soviet
271
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Union . The diplomatic relation was established on January 26, 1992 . Based on these data, the relationship
between Belarus and Japan can be assessed with ranking score level three: 0 = average. Relationship could
be better, but worse too. Further research necessary if you decide to do business with of in this country.
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Gross National Income PPP per capita in USD - The GNI PPP per capita in USD in Belarus is $16.950 . Belarus
is assessed with ranking score level four: between $15.001 and $20.000 GNI per Capita, PPP.
274
Inflation rate - Belarus inflation rate for 2014 is +18,10% . This means that Belarus is being ranked on score
level three: between plus 15% and plus 25%.
products. An extended population creates a bigger market to operate in. Belarus amount of residents is
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9.589.689 . That means that Belarus is assessed with ranking score level one.
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Exports in millions USD - Belarus exports for $35.740 Million every year . In other words, Belarus achieves a
score one: less than $100.000 Million. With this, Belarus is on the 62nd place of all countries in the world.
Exchange rates yearly in percentages - The exchange rate of Belarus is 67%. This means that Belarus is
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assessed for ranking score level one: 60% and higher .

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"Relation between Japan en Russia." Wikipedia.org. Retrieved on 8 December 2015.

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"Inflation Rates Russia." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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"History Belarus." Wikipedia.org. Retrieved on 16 December 2015.
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"Relation between Japan and Belarus." Ministry of Forreign Affairs of Japan. Retrieved on 15 December 2015.
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"Inflation Rates Belarus." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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VIII. ROUGH SCAN FULL DATA EXCEL
IX. OVERALL RANKINGS ROUGH SCAN

120
X.
DETAILED SURVEY THE CRITERIA
Consumption Consumer Electronics / Product demands

Consumption is normally the largest Gross Domestic Product component. Many persons judge the economic
performance of their country mainly in terms of consumption levels and dynamics. Consumer electronics are
durable goods it can be used for many years. For most people it is an essential part of their lives and therefore
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they spend a considerable part of their discretionary income to, among other things, consumer electronics .
Discretionary income the amount of an individuals income that is left for spending, investing of saving after taxes
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and personal necessities is thereby an important understanding . Despite that the discretionary income is not
the only part of consumption.
In economics, a recession is a business cycle contraction. It is a general slowdown in economic activity.
Macroeconomic indicators such as GDP fall, while bankruptcies and the unemployment rate rise. Recessions
generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered
by various events, such as a financial crisis, an adverse supply shock or the bursting of n economic bubble. That
means that in time of economic recession, people spend less and (try to) save more, which means less of our
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products will be sold in the same amount of time .
Consumption Consumer Electronics / product demands (weight 0,15)
Score 1:
Significantly declining market, intense competition, low purchasing power et cetera.
Score 2:
Weak shrinking market, competition, few product demand et cetera.
Score 3:
Constant market, average product demand, average competition et cetera.
Score 4:
Slightly growing market, excessive competition, increasing product demand et cetera.
Score 5:
Booming market, heavily increasing product demand, increasing prosperity et cetera.
Revenue Growth on the Consumer Electronics market 2015
A crucial aspect of a market analysis is finding the market growth rate, which refers to the rise in sales among your
customer base over a given period of time. While healthy companies note a growth in sales that is greater than of
equal to the growth of the market, floundering companies record sales growth at a rate below the market. By
understanding markets growth rate and how it related to your sales growth rate, you can evaluate the success of a
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given product or service and make important decisions about marketing your business moving forward .
Revenue Growth of the Consumer Electronics Market (weight 0,15)
Score 1:
Between or below 0% and 7% market growth.
Score 2:
Between 7,01% and 14% market growth.
Score 3:
Score 4:
Score 5:
A market growth of 28,01% and more.
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Average revenue per user per year

The average annual revenue per paying user in US dollars of the consumer electronics market forms interesting
information within a cost-benefit analysis. A cost-benefit analysis helps you understand the most efficient
production level at which you should run your business. Other times, these analyses also provide appropriate
levels at which you can set your price. These revenue analyses in turn to provide you with an outline of what it takes
to run a profit-maximizing firm. The higher the average revenue per user per year is, the more interesting is the
market.

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"Importance of Consumption." Economics Web Institute. Retrieved on 13 December 2015.

"Definition Decretionary Income." Investopedia.com. Retrieved on 13 December 2015.
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"Impact of Recession." Wikipedia.org. Retrieved on 13 December 2015.
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"Importance of Market Growth Rate." QuickBooks. Retrieved on 13 December 2015.
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"Average revenue definition." Demand Media. Retrieved on 19 December 2015.
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Average Revenue per User per year in USD (weight 0,05)

Score 1:
Less than $140 USD.
Score 2:
Between $141 USD and $154 USD.
Score 3:
Score 4:
Score 5:
More than $186 USD.
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User penetration consumer electronics in 2015

Market penetration is the percentage of a target market that consumes a product or service. Market penetration
can also be a measure of one companys sales as a percentage of all sales for a product. So in cases when
penetration already reaches its maximum, we speak from a mature market. If this is not the case, there are chances
to grow and to gain market share in the specific country.
User penetration consumer electronics 2015 (weight 0,20)
Score 1:
More than 21% penetration.
Score 2:
Between 17% and 21% penetration.
Score 3:
Score 4:
Score 5:
Less than 9% penetration.
The Global Competitive Index
We define competitiveness as the set of institutions, policies, and factors that determine the level of productivity of
a country. The level of productivity, in turn, sets the level of prosperity that can be reached by an economy. The
productivity level also determines the rates of return obtained by investments in an economy, which in turn are the
fundamental drivers of its growth rates. In other words, a more competitive economy is one that is likely to grow
faster over time. The concept of competitiveness thus involves static and dynamic components. Although the
productivity of a country determines its ability to sustain a high level of income, it is also one of the central
determinants of its return of investment, which is one of the key factors explaining an economys growth potential.
The Global Competitive Index rates each country on a score from one tot seven. The average score of the twelve
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used pillars to create the GCI creates the final ranking .
Intensity of competition (weight 0,15)
Score 1:
Less than score 2,75 Global Competitiveness Index.
Score 2:
Between 2,76 and 3,50 Global Competitive Index.
Score 3:
Score 4:
Score 5:
More than 5,01 Global Competitive Index.
Trade promotions
Getting rid of tariffs will make it cheaper for companies to import and export goods, helping to improve efficiency
for customers on both sides of the deal. A free trade agreement (FTA) involves cooperation between at least two
countries to reduce trade barriers such as import quotas and tariffs and to increase trade of goods and services
286
with each other .
Trade promotions (weight 0,15)
Score 1:
No trade promotions at all, there are even major differences between the countries.
Score 2:
No trade agreements, but still a good relationship between the two countries.
Score 3:
On going negotiations (in advanced stage) between the countries are a fact.
Score 4:
Relatively new Free Trade Agreement between two countries.
Score 5:
Countries have a stable, long-lasting Free Trade Agreement (FTA) and EPA.

284
"Market penetration definition." Investing Answers. Retrieved on 19 December 2015.

"World Competitiveness Report 2014-2015." World Economic Forum. Retrieved on 16 December 2015.
286
"Definition Free Trade Area." Wikipedia.org. Retrieved on 16 December 2015.
285
122
Environmental concerns
As a company, Sony attaches great value to the environment. Therefore their new market must be concerned with
the environment too. The Environmental Performance Index (EPI) ranks how well countries perform on high-priority
environmental issues in two broad policy areas: protection of human health from environmental harm and
287
protection of ecosystems . The overall score of the country leads to a global ranking and an overall score out of
th
288
100. For example: Japan ranks on the 26 place on earth with an overall score of 72.35 out of hundred .
Environmental concerns (weight 0,15)
Score 1:
score between 0 and 20 EPI.
Score 2:
Score 3:
Score 4:
Score 5:
score 51 and higher EPI.

287
288
"The Environmental Performance Index." Yale University. Retrieved on 16 December 2015.

"Country profile EPI Japan." Yale University. Retrieved on 16 December 2015.
XI. COUNTRY PROFILE DETAILED SURVEY

1. China
289
Consumption Consumer Electronics / Product demands Although the growth of the economy slowed down in
China in 2015, overall consumer electronics continued to grow, especially in new categories of wearable
electronics and OLED TVs due to their innovation and smart functions. Nevertheless, some traditional electronics
such as imaging devices, portable media player, home audio and cinema and portable players suffered declines in
2015 due to threats from smart devices including smartphones tablets and smart TVs.
In 2015, functions of consumer electronics were upgraded to be smarter. For instance, smart audios developed by
JD.com can be controlled by sound to download music and audio books automatically to the cloud, answer
queries including weather forecasts, daily news and voice messages and control smart home appliances, such as
lightning, switches, air conditioners, humidifiers, purifiers and sweepers.
Domestic manufacturers accounted for increasing shares of consumer electronics due to improved technology
and growing brand reputation. In 2015, Xiaomi Technology Co Ltd ranked first due to its extraordinary
performance in smartphones, smart TVs and wearable electronics. Furthermore, the large effort within research
and development and innovation contributed to its success. Conversely, international brands experienced
depression due to the threats for domestic brands.
Traditional electronics and appliance specialist retailers maintained its dominant position in consumer electronics
in China. It upgraded flagship stores to enhance the consumer experience and interaction. Nevertheless, the
channel was threated heavily by Internet retailing due to its enlarged delivery area. To survive competition from
internet retailing, electronics and appliance specialist retailers also opened its own e-commerce stores and made
huge efforts to develop its logistics system, including establishing its own logistic infrastructure and cooperation
with other leading logistic companies.
The volume sales of consumer electronics will record slower growth over the forecast period mainly caused by the
economy slowdown and longer replacement cycle. As the market becomes statured, the growth rate of demand
will also slow down. Nevertheless, volume sales of innovative smart devices are predicted to grow. Meanwhile, with
growing disposal incomes, consumers will show a tendency to purchase high-end products.
Based on the above-mentioned information, we assess the demand for consumer electronics in China with ranking
score level four. The Chinese market is characterised by an increasing demand for consumer electronics.
However, traditional brands gain ground and are more frequently purchases that the non-domestic brands.
290
Revenue Growth of the Consumer Electronics market 2015 - In 2015 the Chinese revenue will grow with 27,3%.
For 2015 the absolute revenue is 27.918,8 million U.S. Dollar, in comparison to the USA with 57.263,5 million U.S.
Dollar. This means that China is assessed with ranking score level four.
291
Average revenue per user per year in USD in 2015 - The Chinese ARPU for 2015 is $197,65 U.S. Dollar. The
expectation is that American people will spend on average 979,55 U.S. Dollar per year on consumer electronics.
This means that China is assessed with ranking score level five.
292
User penetration consumer electronics in 2015 - The penetration of consumer electronics in the Chinese market
is 13,6%. The highest penetration of consumer electronics in the world is 26,8% in Denmark. This means that China
is assessed with ranking score level three.

289
290
291
292
"Product demand consumer electronics China." Euromonitor research Consumer electronics in China. Retrieved 19 December 2015.
"Revenue growth 2015 China." Statista.com. Retrieved on 19 December 2015.
"Average revenue per user per year in USD China." Statista.com. Retrieved on 19 December 2015.
"Market penetration Consumer Electronics China." Statista.com. Retrieved on 19 December 2015.
124
Intensity of competition China is an innovating, fast growing emerging market. Following the Global Competitive
th
Index survey the country ranked with a score of 4,89 (on a scale of one to seven) 28 place out of 144 countries
293
researched. This means that China scores four points for this criterion .
Trade promotions - Although the relationship between Japan and China is getting stronger, it isnt strong enough
for a Free Trade Agreement or better: an Economical Partnership Agreement. For several years there have been
294295
negotiations, which unfortunately didnt led to an agreement yet
. This means that China is evaluated with
ranking score level three: On going negotiations between the countries are a fact.
Environmental Performance Index - The overall score of the country leads to a global ranking and an overall score
th
296
out of 100. China ranks on the 118 place on earth with an overall score of 43 out of hundred . That means that
China is awarded with ranking score level three: between 30 and 44 EPI.
2. Mexico
297
Consumption Consumer Electronics / Product demands The Mexican economy has struggled with the fast
rising exchange rate between the Mexican peso and the US dollar. This has affected all income groups in the
country; however, the implementation of new reforms helped consumer electronic player to record positive retail
volume and value sales performances in 2015. The disparity in income levels among the populations saw
opposing trends, with high-income households, the key purchasers of high-end products, continuing to acquire
consumer electronics, while low-income households are being negatively affected by rising prices of imported
products.
The Mexican government is set to achieve its goal of an analogue shutdown by December 2015. The government
is supporting low-income to transition to digital TV. Broadcast TV companies and internet service providers are
preparing to offer all benefits to consumers. The long-proposed project is expected to provide a major
transformation in Mexico and expectation is high among the population.
Multinational companies have turned to Latin America, and more and more to Mexico, in search of strong
opportunities to expand their businesses. The major economies in Europe and the US are no longer attractive due
to the maturity of the markets, including slowdowns in European economies. Mexico is considered an early
adopter of technology and new brands with the potential to reach consumption levels of most European countries,
as suggested by the growth rates recorded in other important industries, such as automotive and tourism.
Distribution has seen important movements due to the arrival of major non-store retailers, such as online player
Amazon and home shopping enterprise CJ O Shopping. Furthermore, telecom operations have modifies their
commercial strategies as other channels gained shares of phones sales due to changes in legislation. Consumers
are no longer loyal to retailers as price becomes the main driver of where to purchase electronic devices.
The strength of the competition in several categories, characterised by the presence of more players, has
negatively impacted prices. The launch of innovative luxury devices was supported by a strategy of high-quality
devices at affordable prices. This positioned those products as the most popular among Mexican consumers,
forcing other competitors to lower their prices in order to maintain their company/brand shares. Only
underdeveloped categories are likely to maintain high prices, but only for a short period.
Based on the above-mentioned information, we assess the demand for consumer electronics in Mexico with
ranking score level four. The Mexican market is strongly bisected, causing a very attractive target audience and an
audience that cannot afford the Sony products.

293
294
295
296
297
Global Competitiveness Report 2014-2015, World Economic Forum. PDF, page 13. Retrieved on 16 December 2015.
"China-Japan trade negotiations." China FTA Network. Retrieved on 16 December 2015.
"FTA & EPA Japan with other countries." Ministry of Foreign Affairs of Japan. Retrieved on 16 December 2015.
"Country profile EPI China." Yale University. Retrieved on 16 December 2015.
"Product demand consumer electronics Mexico." Euromonitor Consumer electronics in Mexico. Retrieved on 19 December 2015.
298
Revenue Growth of the Consumer Electronics market 2015 - In 2015 the Mexican revenue will grow with 28,2%.
Dollar. This means that China is assessed with ranking score level two.
299
Average revenue per user per year in USD in 2015 - The Mexican ARPU for 2015 is $180,98 U.S. Dollar. The
This means that Mexico is assessed with ranking score level four.
300
User penetration consumer electronics in 2015 - The penetration of consumer electronics in the Mexican market
is 11,6%. The highest penetration of consumer electronics in the world is 26,8% in Denmark. This means that
Mexico is assessed with ranking score level four.
Intensity of competition - Following the Global Competitive Index survey Mexico ranked with a score of 4.27 (on a
th
scale of one to seven) 61 place out of 144 countries researched. This means that Mexico scores four points for
301
this criterion .
Trade promotions - For years and years actually centuries have passed the relationship between Japan and
Mexico is very strong. Since 2005 both countries signed the Free Trade Agreement and Economic Partnership
302
Agreement . This means that Mexico is evaluated with ranking score level five: Countries have a stable, longlasting Free Trade Agreement (FTA) and Economical Political Agreement (EPA).
th
303
out of 100. Mexico ranks on the 65 place on earth with an overall score of 55.03 out of hundred . That means
that Mexico is awarded with ranking score level five: 55 and higher EPI.
3. Brazil
304
Consumption Consumer Electronics / Product demands The Brazilian consumer electronics market faces a
completely different economic situation in 2015 than it did earlier in the review period. A downturn in the local
economy resulted in limited access to credit for consumers, higher interest rates and rising unemployment.
Together with other unfavourable economic indicators, these conditions had a negative impact on demand for
consumer electronics in general. Smartphones and tablets continued to perform relatively well as compared to
other categories, but even these star performances saw volume growth rates slow due to the economic downturn.
Due to the economic downturn, in 2015 manufacturers and retailers of consumer electronics in Brazil were even
more reliant than usual on seasonal sales periods/dates such as Christmas and Black Friday. Similarly, as the
downturn resulted in budgetary restrictions, consumers were particularly price sensitive, with many waiting for
seasonal sales of actively seeking out special offers before buying new laptops, televisions, tablets, home cinema
and speaker systems et cetera. All of this served intensifies competition among manufacturers and retailers alike
across the consumer electronics market.
Samsung Electronics remained the leading manufacturer in consumer electronics in Brazil in retail volume sales
terms in 2015, followed by LG Electronics. Samsung was able to maintain a strong overall lead thanks to sustained
investment in its product portfolio, marketing campaigns and good relationships with retail chains. Moreover, the
company continued to run very aggressive sales campaigns, which helped to ensure it maintained a strong
presence in key consumer electronics categories such as televisions, smartphones, tablets and laptops.

298
299
300
301
302
303
304
"Revenue growth 2015 Mexico." Statista.com. Retrieved on 19 December 2015.

"Average revenue per user per year in USD Mexico." Statista.com. Retrieved on 19 December 2015.
"Market penetration Consumer Electronics Mexico." Statista.com. Retrieved on 19 December 2015.
"Country profile EPI Mexico." Yale University. Retrieved on 16 December 2015.
"Product demand consumer electronics Brazil." Euromonitor Consumer Electronics Brazil. Retrieved on 19 December 2015.
126
As the economic downturn caused demand for consumer electronics to slow in 2015, electronics and appliance
specialist retailers had to adjust their operations to maintain profitability and, in some cases, to survive. Ever major
chains were forces to cut expenses by shutting down some outlets, reducing personnel numbers and
renegotiating with manufacturers in order to break even and continue operation. Thanks to their competitive
pricing strategies, operators in the internet retailing channel weathered the change in economic conditions better
than their store-based counterparts. The stronger performance of internet retailing also reflected the increasing
tendency of Brazilians to compare prices and read product reviews online before buying, as well as growing
appreciation for the convenience of online shopping generally.
Given the depth of the economic recession in 2015, it is expected that demand for consumer electronics in Brazil
will remain weak in 2016 and following years. The downturn has led to Brazilians to cut spending on all kinds of
goods, particularly non-essentials like consumer electronics products. It is unlikely that there will be any significant
improvement in performance of the local consumer electronics market until at least 2017, though any such
recovery will depend on government incentives and macroeconomic conditions.
Based on the above-mentioned information, we assess the demand for consumer electronics in Brazil with ranking
score level two. The Brazilian market is significantly declining and the level of prosperity decreases. Due to high
th
supply and low product demand, competition is growing. However, Brazil is a BRIC country and the 7 largest
economy in the world with the most millionaires and billionaires in one country in the world.
305
Revenue Growth of the Consumer Electronics market 2015 - In 2015 the Brazilian revenue will grow with 8,4%.
Dollar. This means that Brazil is assessed with ranking score level three.
306
Average revenue per user per year in USD in 2015 - The Brazilian ARPU for 2015 is $155,79 U.S. Dollar. The
This means that Brazil is assessed with ranking score level four.
307
User penetration consumer electronics in 2015 - The penetration of consumer electronics in the Brazilian market
is 16,1%. The highest penetration of consumer electronics in the world is 26,8% in Denmark. This means that
Mexico is assessed with ranking score level three.
Intensity of competition - the Global Competitive Index survey Brazil ranked with a score of 4,34 (on a scale of one
th
308
to seven) 57 place out of 144 countries researched. This means that Brazil scores four points for this criterion .
Trade promotions - For years and years the relationship between Japan and Brazil is very strong, although there is
no Free Trade Agreement or Economical Partnership Agreement. This means that Mexico is evaluated with
ranking score level two: No trade agreement, but still a good relationship between the two countries.
th
309
out of 100. Brazil ranks on the 77 place on earth with an overall score of 52.97 out of hundred . That means that
Brazil is awarded with ranking score level four: between 45 and 54 EPI.
4. Malaysia
310
Consumption Consumer Electronics / Product demands Consumer electronics exhibited yet another year of
strong volume growth in 2013 and 2014. Despite the economic volatility, consumer electronics managed to
display a robust growth aided by the rising disposable income amongst consumers. The higher purchasing power
prompted consumer to be more willing to upgrade to better-quality consumer electronics including smartphones,

305
306
307
308
309
310
"Revenue growth 2015 Brazil." Statista.com. Retrieved on 19 December 2015.

"Average revenue per user per year in USD Brazil." Statista.com. Retrieved on 19 December 2015.
"Market penetration Consumer Electronics Brazil." Statista.com. Retrieved on 19 December 2015.
"Country profile EPI Brazil." Yale University. Retrieved on 16 December 2015.
"Product demand consumer electronics Malaysia." Euromonitor Consumer Electronics in Malaysia. Retrieved 19 December 2015.
DSLR cameras, LCD TVs and more. The frequent promotions rolled out by manufacturers or retailers also enticed
more value conscious consumers, thereby fuelling the overall demand for consumer electronics.
As the lifestyles of consumers become increasingly fast faces, particularly in the urban areas, consumers desire
more consumer electronics to boost their work productivity. Consumer electronics such as tablets and laptops
bring convenience and speed to consumers lives, with their use of advanced technology such as cloud computing
and their portable size. Other consumer electronics like smartphones have become part of consumers daily lives
as they have grown into a necessity for not only communication but also work and entertainment purposes. Given
such lifestyle habits, consumers have become considerably reliant on consumer electronics.
Tablets and other portable computers continue to display strong growth. With the aggressive marketing
campaigns by key brands such as Apple and Samsung, this products category saw a boost in consumer demand.
Such marketing efforts, coupled with the consumers fast-paced lifestyle, drove the popularity of portable
consumer electronics. There is an apparent shift of preferences towards tablets and other portable computers, as
evidenced in the rising number of households that own one or more laptops instead of sharing a desktop. Other
portable devices such as e-readers also witnessed an uptrend in their growth performance, as consumers are
gradually favouring these devices because they can download many books and read them on the go, instead of
physically carrying heavy books.
Electronics and appliance specialist retailers are likely to continue as the leading distribution channel for consumer
electronics over the forecast period. Coupled with their comprehensive product offerings, the frequent
promotions rolled out by these retailers like Apple and Samsung stored provide consumers with an enhances instore experience, aided by their overall store aesthetics and facilities. This in turn entices more consumers to
patronise such stores, thereby fuelling the consumer demand.
Consumer electronics is likely to see a weaker yearly growth over the forecast period versus 2014 due to the
increasingly maturity of the market. The demand for consumer electronics is likely to concentrate on replacement
or upgraded of older products by newer models, or switches of products within consumer electronics, thereby
offsetting any change in its volume growth. The core drivers in the volume growth over the forecast period will be
the demand from first-time buyers, largely from rural areas, and the population growth in the country. Meanwhile,
existing consumers are likely to purchase additional consumer electronics with their growing sophistication in their
preferences and rising disposable income. For instance, there will be more households owning more than one
television set or laptop computer over the forecast period, and such purchases contribute to the overall volume
growth in the long run.
Based on the above-mentioned information, we assess the demand for consumer electronics in Malaysia with
ranking score level five. The Malaysian market is a growing market with an increasing demand for consumer
electronics, especially smart consumer electronics.
311
Revenue Growth of the Consumer Electronics market 2015 - In 2015 the Malaysian revenue will grow with
25,3%. For 2015 the absolute revenue is 252,9 million U.S. Dollar, in comparison to the USA with 57.263,5 million
U.S. Dollar. This means that Malaysia is assessed with ranking score level four.
312
Average revenue per user per year in USD in 2015 - The Brazilian ARPU for 2015 is $149,95 U.S. Dollar. The
This means that Brazil is assessed with ranking score level three.
313
User penetration consumer electronics in 2015 - The penetration of consumer electronics in the Malaysian
market is 8,1%. The highest penetration of consumer electronics in the world is 26,8% in Denmark. This means that
Malaysia is assessed with ranking score level five.

311
312
313
"Revenue growth 2015 Malaysia." Statista.com. Retrieved on 19 December 2015.

"Average revenue per user per year in USD Malaysia." Statista.com. Retrieved on 19 December 2015.
"Market penetration Consumer Electronics Malaysia." Statista.com. Retrieved on 19 December 2015.
128
Intensity of competition - Following the Global Competitive Index survey Malaysia ranked with a score of 5.16 (on a
th
scale of one to seven) 20 place out of 144 countries researched. This means that Malaysia scores four five for this
314
criterion .
Trade promotions - For years and years the relationship between Japan and Malaysia is very strong. Since 2004
315
both countries signed the Free Trade Agreement and Economic Partnership Agreement . This means that
Malaysia is evaluated with ranking score level five: Countries have a stable, long-lasting Free Trade Agreement
(FTA) and Economical Political Agreement (EPA).
th
316
out of 100. Malaysia ranks on the 51 place on earth with an overall score of 59.31 out of hundred . That means
that Malaysia is awarded with ranking score level five: 55 and higher EPI.

314
315
316
"Country profile EPI Malaysia." Yale University. Retrieved on 16 December 2015.
XII. DETAILED SURVEY FULL DATA EXCEL

130
XIII. DESTEP MALAYSIA

317
Demographic
In July 2015 Malaysia counts 30,513,848 citizens. This means that Malaysia is the 43th biggest country in the world.
The age structure is the following:
0-14 years:
28,49%
15-24 years:
16,91%
25-54 years:
41,12%
55-64 years:
7,84%
65 years and over:
5,65%
Sex ratio 1.06 males/females

The median age in Malaysia is 27,9 years old. The population grows every year with 1,44%. The average sex ratio
of the total population is 1.03 males for every woman. The life expectancy at birth is on average 74,75 years old.
Males die younger than females.
Malaysian people are divided in multiple ethic groups, but the largest group is Malay with only 50,1% of the
people belonging to this group. The other commonly represented group are the Chinese with 22,6%. The
standard language spoken is Bahasa Malaysia, English or Chinese.
Geographical characteristics and differences

Malaysia is separated by the South China Sea into two similarly sized regions, Peninsular Malaysia and East
Malaysia. Peninsular Malaysia shares a land and maritime border with Thailand and maritime borders with
Singapore, Vietnam and Indonesia. East Malaysia shares land and maritime borders with Brunei and Indonesia and
318
a maritime border with the Philippines . The capital city is Kuala Lumpur, while Putrajaya is the seat of the federal
th
government. Malaysia covers an area of 329,847 square kilometres and is 67 largest country in the world. It is
slightly larger than New Mexico. The Malaysian climate is tropical: annual southwest from April to October and
northeast from October to February monsoons.
Economic
Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an
emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve highincome status by 2020 and to move farther up the value-added production chain by attracting investments in
Islamic finance, high technology industries, biotechnology and services. NAJIBs Economic Transformation
Program (ETP) is a series of projects a policy measures intended to accelerate the countries economic growth. The
government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world
commodity prices or a general slowdown in global economic activity.
The NAJIB administration is continuing efforts to boost demand and reduce the economys dependence on
exports. Nevertheless, exports particularly of electronics, oil and gas, palm oil and rubber remain a significant
driver of the economy. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas
sector supplied about 29% government revenue in 2014. As an oil and gas exporter, Malaysia has previously
profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined
with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial
reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and
services tax. Falling global oil prices in the second half of 2014 have strained government finances, shrunk
Malaysias current account surplus and put downward pressure on the ringgit. The government is trying to lessen
its dependence on state oil producer Petronas.
Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory
regime has limited Malaysias exposure to riskier financial instruments and the global financial crisis. In order to
attract increased investment, NAJIB raised possible revisions in the special economic and social preferences

317
318
"Demographic & Geographical data Malaysia." CIA.gov. Retrieved on 28 December 2015.

"Geographical information Malaysia." Wikipedia. Retrieved on 30 December 2015.
accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered
significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the
new Bumiputra Economic Empowerment Program (BEEP), policies that favour and advance the economic
condition of ethnic Malays.
319
The Global Competitive Index (GCI) reveals the poor

performance among many of the 20 largest emerging
economies which together account for 27 percent of
global GDP in terms of the functioning of their
institutions, as well as in establishing efficient product
and labour markets. In particular, six of those
th
countries rank below the 100 mark: Argentina,
Brazil, Egypt, Mexico, Pakistan and Venezuela. A
th
further eight countries rank lower than the 100 mark
in at least one of the three categories (1. Boosting
competition, esp. in strategic sectors of the economy
by removing bottlenecks and barriers to entry, 2.
Making the labour markets more flexible and more
effective at using all existing talent and 3. Improving
the efficiency of public institutions, which is also
crucial to ensure an effective implementation of
structural reforms). Furthermore the GCI results also
point to a lack of progress over time. Only three
countries have recorded higher values in all areas
since 2010: Malaysia, the Philippines and the Russian
Federation.
From the twenty largest emerging economies in the
world, Malaysia is ranked number one on selected components of the GCI. Following the Global Competitive
th
Index survey the country ranked with a score of 4,89 (on a scale of one to seven) 20 place out of 144 countries
researched.

319
132
Trade relations
Japan-Malaysia relations refer to bilateral foreign relations between the two countries, Japan and Malaysia. The
earliest recorded historical relations between the two nations are the trade relations between the Malacca Sultinate
th
th
and the Ryukyu Kingdom in the 15 century. This continued well into the 20 century with the rise of the Empire of
Japan and its subsequent invasion and occupation of British Malaya during World War II.
The total trade between Malaysia and Japan in 2011 was at RM145.3 billion (about 42 billion USD) with RM 80
billion contributed by exports from Malaysia to Japan, while imports from Japan amounted to RM65.3 billion.
320
There are about 1400 Japanese companies operating in Malaysia, creating more than 11.000 job opportunities .
Financial data
321
can have damaging economic and social consequences. Malaysias inflation rate for 2014 is 3,10% .
322
323
scale as well: they impact the real return of an investors portfolio . Malaysias exchange rate is 23,20% .
Malaysias Gross Domestic Product official exchange rate is $326,93 billion in 2014. The GDP value of Malaysia
represents 0,53 percent of the world economy. GDP in Malaysia averaged 74,84 USD Billion from 1960 until 2014,
324
reaching an all time high of 326,93 USD Billion in 2014 and a record low of 2,42 USD Billion in 1961 .
Gross Domestic Product Purchasing Power Parity conversion factor is the number of units of a countrys currency
required to buy the same amounts of goods and services in the domestic market as U.S. Dollar would buy in the
325
United States . The GDP PPP per resident of Malaysia is $25.100.
Gross National Income per capita based on purchasing power parity (PPP). PPP GNI is gross national income (GNI)
converted to international dollars using purchasing power parity rates. An international dollar has the same
purchasing power over GNI as a U.S. dollar has in the United States. GNI is the sum of value added by all resident
producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipt of primary
income (compensation of employees and property income) from abroad. Data are in current international dollars
326
327
based on the 2011 ICP round . The GNI PPP per capita in USD in Malaysia is $22.530 .
Exports
helped exports become a bigger share of national income in the post ware period. Competitiveness, quality and
328

320
321
322
323
324
325
326
327
328
"Japan - Malaysia relations." Wikipedia.org. Retrieved on 16 December 2015.

"Inflation Rates Malaysia." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
"GDP Malaysia." Trading Economics. Retrieved on 28 December 2015.
329
Malaysia exports for $224.900 billion every year

world.
th
. With this, Malaysia is on the 24 place of all countries in the
Consumer Electronics Market330

Consumer electronics exhibited yet another year of strong volume growth in 2013 and 2014. Despite the
economic volatility, consumer electronics managed to display a robust growth aided by the rising disposable
income amongst consumers. The higher purchasing power prompted consumer to be more willing to upgrade to
better-quality consumer electronics including smartphones, DSLR cameras, LCD TVs and more. The frequent
promotions rolled out by manufacturers or retailers also enticed more value conscious consumers, thereby fuelling
the overall demand for consumer electronics.
As the lifestyles of consumers become increasingly fast faces, particularly in the urban areas, consumers desire
more consumer electronics to boost their work productivity. Consumer electronics such as tablets and laptops
bring convenience and speed to consumers lives, with their use of advanced technology such as cloud computing
and their portable size. Other consumer electronics like smartphones have become part of consumers daily lives
as they have grown into a necessity for not only communication but also work and entertainment purposes. Given
such lifestyle habits, consumers have become considerably reliant on consumer electronics.
Tablets and other portable computers continue to display strong growth. With the aggressive marketing
campaigns by key brands such as Apple and Samsung, this products category saw a boost in consumer demand.
Such marketing efforts, coupled with the consumers fast-paced lifestyle, drove the popularity of portable
consumer electronics. There is an apparent shift of preferences towards tablets and other portable computers, as
evidenced in the rising number of households that own one or more laptops instead of sharing a desktop. Other
portable devices such as e-readers also witnessed an uptrend in their growth performance, as consumers are
gradually favouring these devices because they can download many books and read them on the go, instead of
physically carrying heavy books.
Electronics and appliance specialist retailers are likely to continue as the leading distribution channel for consumer
electronics over the forecast period. Coupled with their comprehensive product offerings, the frequent
promotions rolled out by these retailers like Apple and Samsung stored provide consumers with an enhances instore experience, aided by their overall store aesthetics and facilities. This in turn entices more consumers to
patronise such stores, thereby fuelling the consumer demand.
Consumer electronics is likely to see a weaker yearly growth over the forecast period versus 2014 due to the
increasingly maturity of the market. The demand for consumer electronics is likely to concentrate on replacement
or upgraded of older products by newer models, or switches of products within consumer electronics, thereby
offsetting any change in its volume growth. The core drivers in the volume growth over the forecast period will be
the demand from first-time buyers, largely from rural areas, and the population growth in the country. Meanwhile,
existing consumers are likely to purchase additional consumer electronics with their growing sophistication in their
preferences and rising disposable income. For instance, there will be more households owning more than one
television set or laptop computer over the forecast period, and such purchases contribute to the overall volume
growth in the long run.
Infrastructure331
th
th
The overall infrastructure of Malaysia is one of the most developed in Asia and ranked 8 in Asia and 25 in the
th
world. Malaysia is ranked 19 in the world for its quality roads, quality of port infrastructure and quality of air
th
transport infrastructure but ranked 39 in quality of electricity supply. Its telecommunications network is second
only to Singapores in Southeast Asia.

329
330
331
"Infrastructure." Wikipedia. Retrieved on 30 December 2015.
134
Fresh water is available to over 95% of the population. During the colonial period, development was mainly
concentrated in economically powerful cities and in areas forming security concerns. Although rural areas have
been the focus of great development, they still lag behind areas such as the West Coast of Peninsular Malaysia.
Transportation
Malaysias road network is one of the most comprehensive in Asia and covers a total of 144,403 kilometres. The
main national road network is the Malaysian Federal Roads System, which span over 39,935 kilometres. Most of the
federal roads in Malaysia are 2-lane roads. In town areas federal roads may become 4-lane roads to increase traffic
capacity.
There is currently 1,833 kilometres of railways in Malaysia, 767km are double tracked and electrified. Rail transport
in Malaysia comprises heavy rail (KTM), light rapid transit and monorail (Rapid Rail), and a funicular railway line
(Penang Hill Railway).
Malaysia has 118 airports, of which 39 are paved. The national airline is Malaysia Airlines, providing international
and domestic air services. Malaysia Airlines, AirAsia and Malinda Air serve major international routes and domestic
routes crossing between West Malaysia and East Malaysia.
Malaysia is strategically located on the most important shipping lanes in the world. Malaysia has two ports that are
listed in the top 20 busiest ports in the world, Port Klang and Port of Tanjung Pelepas, which are respectively the
nd
rd
2 and 3 busiest ports in Southeast Asia after the Port of Singapore.
Social (&Cultural)
Language in Malaysia
The Malay language is an Austronesian language spoken not only by Malaysians but all Malay people who reside
in the Malay Peninsula, southern Thailand, the Philippines, Singapore, central eastern Sumatra, the Riau islands,
parts of the coast of Borneo, Cocos and Christmas Islands in Australia. It is also very similar to Indonesian, known
locally as Bahasa Indonesia. In Malaysia, the language is officially known as Bahasa Malaysia, which translates as the
Malaysian language. The term, which was introduced by the National Language Act 1967, was predominant until
the 1990s, when most academics and government officials reverted to Bahasa Belayu, which is used in the Malay
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version of the Federal Constitution .
A Multi-cultural society
Malaysia is a multi-cultural society. The main ethnic groups are the native Malays as well as large populations of
Chinese and Indians. When visiting the country it is clear that the ethnicities retain their religions, customers and
way of life. The most important festivals of each group are public holidays.
Although growing up, children are educated in the same schools and will eventually work in the same offices, few
marry outside their own ethnicity. Families tend to socialise within their own ethnic group all part of retaining their
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individual traditions and lifestyles. Despite the ethnic differences there are commonalities culturally speaking .
The country is predominantly Islamic in its religion but its only the Malay Muslims who are bound by Islamic laws.
The rest of the population is free to practise their own religions. The mixture of religions in the country gives rise to
a large number of religious celebrations: Malaysia as more public holidays than any other country. The religions
are: Muslim (official) 61,3%, Buddhist 19,8%, Christian 9,2%, Hindu 6,3%, Confucianism, Taoism, other tradition
Chinese religions 1,3% other 0,4%, none 0,8% and unspecified 1% (2010 est.).
Group orientation
The family is considered the centre of the social structure. As a result there is a great emphasis on unity, loyalty and
respect for the elderly. The family is the place where the individual can be guaranteed both emotional and

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"A Multi-cultural society."Kwintessentials. Retrieved on 28 December 2015.
financial support. When one member of the family suffers a financial setback, the rest of the family will contribute
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what they can to help out. Families tend to be extended, although in the larger cities this will naturally differ .
The concept of face

Malays, Chinese and Indians all strive to maintain face and avoid shame both in public and private. Face is a
personal concept that embraces qualities such as a good name, good character, and being held in esteem by
ones peers. Face is considered a commodity that can be given, lost, taken away or earned. On top of this face also
extends to the family, school, company, and even the nation itself.
The desire to maintain face makes Malaysians strive for harmonious relationships. Face can be lost by openly
criticizing, insulting, or putting someone on the spot; doing is done in public; showing anger at another person;
refusing a request; not keeping a promise; or disagreeing with someone publicly. Conversely, face can be saved
by remaining calm and courteous; discussing errors or transgressions in private; speaking about problems without
blaming anyone; using non-verbal communications to say no; and allowing the other person to get out the
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situation with their pride intact .
Consumerism336
Healthcare & Consumerism
Healthcare is part of the social and government sector in many parts of the world, but in others it is a consumer
service. Lifestyle drugs - prescription drugs that address conditions that are chronic but not life threatening have
become popular worldwide. Medical tourism is on the rise as a distinct form of consumer-focused medicine. These
and other trends push medicine more towards the consumer realm. Malaysia is ranked among the top five
destinations for medical / health tourism. Factors such as cost-effective treatments, skilled medical professionals
and government support are driving the growth.
Media & Consumerism
Popular media reinforce the idea of consumerism as a lifestyle and carry the advertising meant to draw consumers
to products and services. Consumers in Malaysia now have more access to a media where more people have more
variety of sources for information an entertainment through different devices. Apart from traditional newspapers,
magazines and television, sharing information through social media has become a trend. Some consumers prefer
smartphones for their desirable features and advance ability in term of media accessibility.
Social freedom as mutual effect of consumerism
Rising freedom gives people more economic and social room to engage in consumer lifestyle. At the same time,
the new choices available in consumerist societies let people express their social freedom as they buy products
that help define and differentiate them from their fellow citizens (e.g. sport cars, hip-hop, music, organic).
Consumer goods will be used more and more as a way fro people in developing countries to define themselves
and express their growing freedom. Countries that are opening up will help speak modern consumerism further
around the world.
Womens power
As their position in society improves, womens economic options and resources increase. This means that they are
able to more directly drive and direct consumer spending. Womens rising economic and social status will be
expresses through consumption choices, and used to pursue new identity options.
Monetization
Monetization gives consumers new options for consumerist identities and pursuits. The rise of consuming classes
provides the incentive for businesses to monetize daily activities. Time consuming household activities are
monetizes in consumer societies, including food preparation and childcare. As incomes rise, more and more of
consumer lifestyles will be monetized, e.g. exercise, dog walking and shopping.

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"Group orientation." Kwintessentials. Retrieved on 28 December 2015.

"The concept of Face." Kwintessentials. Retrieved on 28 December 2015.
"Social & Cultural developments + Consumerism."Consumerism trend in Malaysia. Author: M.H.M. Saaid. Retrieved on 30 December 2015.
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Technological
Although IT is now well and truly a global industry, each individual region and country reacts to international
influences in its own way. As trends move across continents, they are shaped and reformed as they are integrated
into established infrastructure and adopted by local businesses. This is currently being observed in Malaysia, with
the South-east Asian country putting its own touches on technology developments, enticing jobseekers and
businesses alike.
Internet of Things (IoT)337

One of the most notable trends that Malaysian businesses are focusing on is the Internet of Things (IoT), which,
according to Cisco, involves connecting people and devices at a level that previous generations would have
considered impossible. This allows for a more mobile workforce, with a staff no longer restrained by their physical
workstation.
A report from Accenture attributed this focus to telecommunications provider Telekom, as it is responsible for the
deployment for high-speed connectivity enjoyed by Malaysian homes and businesses. Accenture also noted that
Telekom is reacting to an ageing population in the country by looking to use IoT programs to introduce connected
medical technologies in the home. Not content with the advantages already offered by the services, businesses
around the nation are looking to take this a step further with an new trend knows as Intercloud. Emerging cloud
technology will bridge cloud service provider through partnerships and technical underpinnings, to facilitate
smooth and highly secure exchanges of applications and data across multiple cloud platforms. Given that these
trends have already taken hold in businesses throughout Malaysia, there is a pretty good chance that the country
will continue to innovate and adapt to changing trends.
Information Technology & Consumerism338

Information technology, primarily the Internet, has become increasingly important to consumerism in recent years.
E-commerce, collaborative filtering, eBay, and product research are just a few of the innovations. Information
technology devices have moved from geek to chic, and buying and using the latest IT for some consumers in all
three Worlds is a way to attain an air of coolness and modernity.
The numbers of people buying smartphones has increased to 7.7 million in January 2013. Broadband penetration
in Malaysia increased from 55,6% in 2010 to 66% in 2012. Report by McKinsey & Company in 2012 placed
Malaysia at third place among countries that enjoyed productivity increase for SMEs due to web technologies.
Sharing information on the Internet enable consumers to access more options available online. Some consumers
are moving towards collaborative consumption where people make deals of swap things and services over the
Internet. EGovt initiatives to transform government services online has increased productivity, specifically towards
a paperless government.
Ecological & Environmental
Environmental Issues
At this time, the following environmental issues play parts in Malaysia:
- Air pollution from industrial and vehicular emissions;
- Water pollution from raw sewage;
- Deforestation;
- Smoke/haze from Indonesian forest fires.
Malaysia is party to the following international agreements
Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous
Wastes, Law of the Sea, Marine Life Conservation, Ozone Layer Protection, Ship Pollution, Tropical Timber 83,
Tropical Timber 94.

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"Internet of Things." Tech trends in Malaysia. Talent International.com. Retrieved on 30 December 2015.
"Information Technology & Consumerism."Consumerism trend in Malaysia. Author: M.H.M. Saaid. Retrieved on 30 December 2015.
The Environment Performance Index

The Environmental Performance Index (EPI) ranks how well countries perform on
high-priority environmental issues in two broad policy areas: protection of human
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health from environmental harm and protection of ecosystems . The overall
score of the country leads to a global ranking and an overall score out of 100.
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Malaysia ranks on the 51 place on earth with an overall score of 59,31 out of
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hundred . Biodiversity (turquoise), health impacts (orange), air quality (yellow)
and water sanitation are Malaysias core issues.
World Risk Index
The World Risk Index is a list of countries by natural disaster risk. The report
systematically considers a countrys vulnerability, and its exposure to natural
hazards to determine a ranking of countries around the world based on their
disaster risk. The WRI is based on 28 indicators and research data, which are globally freely available, and results in
a global risk ranking and maps, which allow for comparison between countries. Risk is at its highest where a high
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level op exposure to natural hazards coincides with very vulnerable societies . The World Risk Index for Malaysia
is 6,44%.
In the biggest part of Malaysia no safety regulations are active. Only in the eastern coast area Sabah and eastern
islands safety regulations are active, due to common abductions of tourists. The terrorist group Abu Sayaf, linked
on ISIS, is possibly working on extending this area.
Energy
Malaysias energy infrastructure sector is largely dominated by Tenage Nasional, the largest electric utility
company in Southeast Asia, with over RM99,03 billion of assets. Customers are connected to electricity through the
National Grid, with more than 320 transmission substations in the Peninsular linked together by approximately
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11.000 kilometres of transmission lines .
Water supply and sanitation343
Universal access to water supply at affordable tariffs is a substantial achievement. The government has also shown
a commitment to make the sector more efficient, to create a sustainable funding mechanism and to improve the
customer orientation of service providers through sector reforms enacted in 2006. Despite the achievements, a
number of challenges remain, only some of which have been addressed by the reforms. First, tariffs are low, thus
making cost recovery impossible at current levels so that the sector continues to depend on government subsidies.
Second, water losses as well as per capita water use rain high despite efforts at water demand management. Third,
a large-scale water transfer project from the Pahang River the Kuala Lumpur is controversial because of its negative
social and environmental impacts. Fourth, the development of sewerage and wastewater treatment has lagged
behind the development of water infrastructure.
Political (& Legal)
Malaysia is a federal constitutional elective monarchy, and the only federation in Southeast Asia. The system of
government is closely modelled on that of the Westminster parliamentary system, a legacy of British colonial rule.
The head of the state is the Yang di-Pertuan Agong, commonly referred to as the King. The King is elected to a
five-year term by and from among the nine hereditary rulers of the Malay states. The other four states, which have
titular Governors, do not participate in the selection. By informal agreement the position is systematically rotated
among the nine, and has been held by Abdul Halim of Kedah since December 2011. The Kings role has been
largely ceremonial since charges to the constitution in 1994, picking ministers and members of the upper house.

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"Energy." Wikipedia. Retrieved on 30 December 2015.
"Water supply and sanitation."Wikipedia. Retrieved on 30 December 2015.
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Multi-ethnic and multi-cultural in politics

The country is multi-ethnic and multi-cultural, which plays a large role in politics. The constitution declares Islam
the state religion while allowing freedom of religion to non-Muslims. The government system is closely modelled
on the Westminster parliamentary system and the legal system is based on common law. The head of the state is
the King, known as the Yang di-Pertuan Agong. He is elected monarch choses from the hereditary rulers of the
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nine Malay states every five years. The head of the government is the prime minister .
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Malaysia is being assessed with 71% political stability.
Malaysia is neither a high-risk country nor a sanction country. Therefore there are no direct limitations to do
business with Malaysia.
Import duties & sales tax

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country of manufacture of the goods . At DutyCalculator.com the actual import taxes and sales taxes are
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found . Malaysia doesnt charge import duties and charges 6% sales tax.
Trade promotions
For years and years the relationship between Japan and Malaysia is very strong. Since 2004 both countries signed
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the Free Trade Agreement and Economic Partnership Agreement .
Government & Consumerism349
A rise in consumerism usually means governments will need to tackle questions of market regulation, product and
food safety, and authenticity in advertising. Governments must also decide which goods and services (such as
phone service or water) are social goods and which are part of the market.
Governments policy and regulation is one of the drivers in the consumption trend. For example, by focusing on
green growth, Malaysia can expedite its target to reduce GHG by 40% in 2020 from its level in 2005. Malaysia is
confident that the services sector will contribute 70% to the gross domestic product (GDP) by 2015.

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"Politics & multi-ethnic + multi-cultural." Wikipedia. Retrieved 30 December 2015.

"Government & Consumerism."Consumerism trend in Malaysia. Author: M.H.M. Saaid. Retrieved on 30 December 2015.
XIV. DESTEP MEXICO

Demographic
In July 2015 Mexico counts 121,736,809 citizens. This means that Mexico is the 12th largest country in the world.
0-14 years:
27,59%
15-24 years:
17,90%
25-54 years:
40,55%
55-64 years:
7,19%
65 years and over:
6,77%

Sex ratio 0,93 males/females
The median age in Mexico is 27,6 years old. The population grows every year with 1,18%. The average sex ratio of
the total population is 0,96 males for every woman. The life expectancy at birth is on average 75,65 years old.
Mexican people are divided in multiple ethic groups, but the largest group is Mestizo (Amerindian-Spanish) with
62% of the people belonging to this group. The other commonly represented group are predominantly
Amerindian 21%, Amerindian 7%, other 10% (mostly European) . Important note: Mexico does not collect census
data on ethnicity.

Mexico is located in North America, bordering the Caribbean Sea and the Gulf of Mexico, between Belize and the
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United States. It is also bordering the North Pacific Ocean, between Guatemala and the United States . The
capital city is Mexico City with almost 21 million citizens. Other large cities are Guadalajara with 4,8 million,
Monterrey with 4,5 million and Puebla with almost 3 million residents. 79,2% of total population lives in urban
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areas. Mexico covers an area of 1,964,375 square kilometres and is 14 largest country in the world. The Mexican
climate varies from tropical to desert with high terrain, rugged mountains, low coastal plains, high plateaus and
desert.
Economic
Mexicos $1,3 trillion economy has become increasingly oriented toward manufacturing in the 21 years since the
North American Free Trade Agreement (NAFRA) entered into force. Per capita income is roughly one-third that of
the United States. Income distribution remains highly unequal. Mexico has become the United States secondlargest export market and third-largest source of imports. In 2014, two-way trade in goods and services exceeded
$550 billion. Mexico has free trade agreement with 46 countries, putting more than 90% of trade under free trade
agreements. In 2012, Mexico formally joined the Trans-Pacific Partnership negotiations and formed the Pacific
Alliance with Peru, Colombia and Chile.
Mexicos current government led by President Enrique PENA NIETO, emphasized economic reforms during its first
two years in office, passing and implementing sweeping education, energy, financial, fiscal and
telecommunications reform legislation, among other, with the long-term aim to improve competitiveness and
economic growth across the Mexican economy. Although the economy is expected to experience stronger growth
in 2012 as a result of increased investment and stronger demand for Mexican exports, growth is predicted to
remain below potential for reasons of inefficiencies, with a large portion of the economy and workforce in the
informal sector, and corruption.
Over the medium-term, the economy is vulnerable to global economic pressures, such as lower external demand,
rising interest rates, and low oil prices approximately 30% of government revenue comes from the state-owned
oil company, PEMEX. The increasing integration of supply chains, development of the energy sector, and
government-to-government focus on trade facilitation will continue to make the North American region
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increasingly competitive and contribute to Mexican economic development and strength .

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"Geographical information Mexico." World Fact Book. CIA.gov. Retrieved on 30 December 2015.
"Mexical economy." World Fact Book. CIA.gov. Retrieved on 30 December 2015.
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We define competitiveness as the set of institutions,
policies, and factors that determine the level of
productivity of a country. The level of productivity, in
turn, sets the level of prosperity that can be reached
by an economy. The productivity level also
determines the rates of return obtained by
investments in an economy, which in turn are the
fundamental drivers of its growth rates. In other
words, a more competitive economy is one that is
likely to grow faster over time. The concept of
competitiveness thus involves static and dynamic
components. Although the productivity of a country
determines its ability to sustain a high level of
income, it is also one of the central determinants of
its return of investment, which is one of the key
factors explaining an economys growth potential.
The Global Competitive Index rates each country on
a score from one tot seven. The average score of the
twelve used pillars to create the GCI creates the final
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ranking .
performance among many of the 20 largest
emerging economies which together account for
27 percent of global GDP in terms of the functioning of their institutions, as well as in establishing efficient
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product and labour markets. In particular, six of those countries rank below the 100 mark: Argentina, Brazil,
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Egypt, Mexico, Pakistan and Venezuela. A further eight countries rank lower than the 100 mark in at least one of
the three categories (1. Boosting competition, esp. in strategic sectors of the economy by removing bottlenecks
and barriers to entry, 2. Making the labour markets more flexible and more effective at using all existing talent and
3. Improving the efficiency of public institutions, which is also crucial to ensure an effective implementation of
structural reforms). Furthermore the GCI results also point to a lack of progress over time. Following the Global
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Competitive Index survey Mexico ranked with a score of 4.27 (on a scale of one to seven) 61 place out of 144
countries researched.
Mexicos competitiveness is also not entirely sustainable, especially from the environmental point of view, where
there are several penalizing factors: the enforcement of its regulations is rather lax, and perhaps partially explains
the countrys low performance on most of the dimensions: management of water resources, fish stocks, forestry,
and carbon intensity. Only 37 percent of the wastewater is treated, adding pressure to the countrys water supply.
Looking at Mexicos social sustainability performance, its low youth unemployment and widespread access to
water and sanitation offset its relatively high level of inequality, its widespread informal economy, and the limited
coverage of its social safety net.

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Trade relations
Japan-Mexico relations refer to the diplomatic relations between Japan and Mexico. Both nations are members of
the Asia-Pacific Economic Cooperation, G-20 major economies, Organisation for Economic Co-operation and
Development and the United Nations. In past centuries, both countries have been working on a strong
relationship.
In April 2005, Japan and Mexico signed a free trade agreement. Since then the trade between the two nations
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increased dramatically. In 2014, trade between the two nations amounted to $20 billion USD . Most of the trade
is in agricultural products, alcohol and automobile parts. Between 2005-2012, Japanese companies invested over
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$12 billion USD in Mexico, mainly in the automobile industries .
Financial data
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can have damaging economic and social consequences. Mexicos inflation rate for 2014 is +4% .
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scale as well: they impact the real return of an investors portfolio . Mexicos exchange rate is 17% .
Mexicos Gross Domestic Product official exchange rate is $1.291 trillion. 2014s GDP real growth rate slightly
higher than previous years is 2,1%. Gross Domestic Product Purchasing Power Parity conversion factor is the
number of units of a countrys currency required to buy the same amounts of goods and services in the domestic
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market as U.S. Dollar would buy in the United States . The GDP PPP per resident of Mexico is $18,000.
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based on the 2011 ICP round . The GNI PPP per capita in USD in Mexico is $16,110 .
Exports
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value added of exports, the exchange rate and a long-run productivity determines the level of exports . Mexico
362
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exports for $398,3 billion every year . Mexico is the 15 largest export country in the world.
Consumer Electronics Market
In 2015 the Mexican revenue on consumer electronics will grow with 28,2%. For 2015 the absolute revenue is
252,9 million U.S. Dollar. The Mexican Average Revenue Per User (ARPU) per year in USD in for 2015 is $180,98
U.S. Dollar. The penetration of consumer electronics with more than 1,86 million users in the Mexican market is
11,6%.

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"Mexican Ministry of the Economy: Japan (in Spanish)." Gob.mx. Retrieved on 16 December 2015.
"Japan-Mexico relations." Wikipedia.org. Retrieved on 16 December 2015.
"Inflation Rates Mexico." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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With a 28,2% market growth in the consumer electronics market in 2015, Mexico has a huge potential to grow
further. The market size is for consumer electronics will be doubled in 2020. The Compound Annual Growth Rate
for Mexico from 2014-2020 is 13%.
Consumption and demand363

The Mexican economy has struggled with the fast rising exchange rate between the Mexican peso and the US
dollar. This has affected all income groups in the country; however, the implementation of new reforms helped
consumer electronic player to record positive retail volume and value sales performances in 2015. The disparity in
income levels among the populations saw opposing trends, with high-income households, the key purchasers of
high-end products, continuing to acquire consumer electronics, while low-income households are being
negatively affected by rising prices of imported products.
The Mexican government is set to achieve its goal of an analogue shutdown by December 2015. The government
is supporting low-income to transition to digital TV. Broadcast TV companies and Internet service providers are
preparing to offer all benefits to consumers. The long-proposed project is expected to provide a major
transformation in Mexico and expectation is high among the population.
Multinational companies have turned to Latin America, and more and more to Mexico, in search of strong
opportunities to expand their businesses. The major economies in Europe and the US are no longer attractive due
to the maturity of the markets, including slowdowns in European economies. Mexico is considered an early
adopter of technology and new brands with the potential to reach consumption levels of most European countries,
as suggested by the growth rates recorded in other important industries, such as automotive and tourism.
Distribution has seen important movements due to the arrival of major non-store retailers, such as online player
Amazon and home shopping enterprise CJ O Shopping. Furthermore, telecom operations have modifies their
commercial strategies as other channels gained shares of phones sales due to changes in legislation. Consumers
are no longer loyal to retailers as price becomes the main driver of where to purchase electronic devices.
The strength of the competition in several categories, characterised by the presence of more players, has
negatively impacted prices. The launch of innovative luxury devices was supported by a strategy of high-quality
devices at affordable prices. This positioned those products as the most popular among Mexican consumers,
forcing other competitors to lower their prices in order to maintain their company/brand shares. Only
underdeveloped categories are likely to maintain high prices, but only for a short period.
Social (& Cultural)
Better Life Index364

Mexico has made tremendous progress over the last decade in terms of improving the quality of life of its citizens,
especially in the areas of education, health and jobs. Notwithstanding, Mexico performs well in only a few
measures of well being relative to most other countries in the Better Life Index. Mexico ranks close to the average
in subjective wellbeing and civic engagement, but below average in the dimensions of jobs and earnings, health
status, environmental quality, and education and skills.
Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Mexico, the
average household net-adjusted disposable income per capita in USD $13.085 a year, less than the OECD average
of USD $25.908 a year. But there is a considerable gap between the richest and poorest the top 20% of the
population more than thirteen times as much as the bottom 20%.
In terms of employment, nearly 61% of people aged 15 to 64 in Mexico have a paid job, lower than the OECD
employment average of 65%. Some 78% of men are in paid work, compared with 45% of women. In Mexico,
almost 29% of employees work very long hours, one of the highest in the OECD where the average is 13%. About
35% of men work very long hours compared with 18% for women.

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"Better Life Index." OECD Better Life Index.org. Retrieved on 1 January 2016.
Good education and skills are important requisites for finding a job. In Mexico, 37% of adults aged 25-64 have
completed upper secondary education, much lower than the OECD average of 75% and one of the lowest rates
amongst OECD countries. This is truer of men than women, as 39% of men have successfully completed high
school compared with 36% of women. In terms of the quality of the education system, the average student scored
417 in reading literacy, maths and science in the OECDs Programme for International Student Assessment (PISA),
lower than the OECD average of 497. On average in Mexico, girls outperformed boys by 1 point, less than the
average OECD gap of 8 points.
In terms of health, life expectancy at birth in Mexico is almost 75 years, five years lower than the OECD average of
80 years, and one of the lowest in the OECD. Life expectancy for women is 77 years, compared with 72 for men.
The level of atmospheric PM10 tiny air pollutant particles small enough to enter and cause damage to the lungs
is 29.8 micrograms per cubic meter in large urban areas, considerably higher than the OECD average in terms of
water quality, as 67% of people say they are satisfied with the quality of their water, below the OECD average of
81%, and one of the lowest rates in the OECD.
Concerning the public sphere, there is a moderate sense of community and level of civic participation in Mexico,
where 77% of people believe that they know someone they could rely on in the time of need, lower than the OECD
average of 88%, and one of the lowest figures in the OECD. Voter turnout, a measure of citizens participation in
the political process, was 63% during recent elections, lower than the OECD average of 68%. Social and economic
status can affect voting rates; but in Mexico there is a little difference across society. Voter turnout for the top 20%
of the population is an estimated 63% and for the bottom 20% it is an estimated 61%, and suggests there is broad
social inclusion in Mexicos democratic institutions.
In general, Mexicans are more satisfied with their lives than the OECD average. When asked to rate their general
satisfaction with life on a scale from 0 to 10, Mexicans gave it a 6.7 grade, slightly higher than the OECD average of
6.6.
Trends in Internet & social media usage in Mexico365

The number of Internet users grew more than 150% from 2006 to 2013. The average time spent using the Internet
each day is five hours and 22 minutes, with more than half of that (three hours and ten minutes) spent through
mobile devices. Social media dominates time Mexicans spend online, at three hours and 46 minutes.
96% of all millennials are active on at least one social media channel. Comprising a little more than half of all
internet users in the country, smartphone penetration has reached only 57% of Millennials, meaning desktopbased is still very much alive.
Mexico is one of the most active countries in the world on Twitter, more than doubling the number of users in the
UK to 12 million. However Facebook is by far most popular social media channel, with an estimated 38 million
users and 95,6% of Internet users stating it is their preferred form of social media.
At present, the Mexican market is dominated by travel ticket sales, which are purchased by almost two thirds (64%)
of all online consumers. It also benefits greatly from the neighbouring US, as half of Mexican online shoppers use
foreign websites. It is out of this relationship that the US Company Walmart has been able to capitalize on the
Mexican market, being part of more than 90% of the physical item orders made online.
Social media may also prove to be the key to boosting Mexican e-commerce. If domestic brands can improve their
in-country online offering, they could start to cultivate a social following that will ensure repeated purchases. By
offering exclusive productions or promotions to social media followers, brands can take advantage of a country
that is booming in terms of social users, and on the verge of e-commerce breakthrough.
Mexican Society & Culture366

The family is at the centre of the social structure.

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"Social media trends Mexico." Socialnomics.net. Retrieved on 30 December 2015.

"Mexican Family Values." Kwintessential.co.uk. Retrieved on 1 Januar 2016.
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Outside of the major cosmopolitan cities, families are still generally large.
The extended family is as important as the nuclear family since it provides a sense of stability.
Mexicans consider it their duty and responsibility to help family members. For example, they will help find
employment or finance a house or other large purchases.
Most Mexican families are extremely traditional, with the father as the head, the authority figure and the
decision-maker.
Mothers are greatly revered, but their role may be seen as secondary to that of their husband.
Hierarchical Society367
Mexican society and businesses are highly stratified and vertically structured.
Mexicans emphasize hierarchal relationships.
People respect authority and look to those above them for guidance and decision-making.
Rank is important, and those above you in rank must always be treated with respect.
This makes it important to know which person is in charge, and leads to an authoritarian approach to
decision-making and problem solving.
Mexicans are very aware of how each individual fits into each hierarchy be it family, friends or business.
It would be disrespectful to break the chain of hierarchy.
Technological
Information and communication technology (ICT) refers to both different types of communications networks and
the technologies used in them. The ICT sector combines manufacturing and services industries whose products
primarily fulfil of enable the function of the information processing and communication by electronic means,
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including transmission and display .
Internet access
With President Enrique Pena Nieto announcing that his target of 100,000 free Internet hotspots is set to surpass by
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the end of this year. 26% of all Mexican households reported that they had access to the Internet . Per 100
inhabitants 42.5 people have a wireless mobile broadband subscription.
Gross domestic spending on Research & Development
Research and experimental development (R&D) comprises creative work undertaken on a systematic basis in order
to increase the stock of human knowledge and to devise new applications based upon it. The term R&D covers
three activities: basic research, applied research and experimental development. Gross domestic spending on
R&D is defined as the total expenditure (current and capital) on R&D carried out by all resident companies,
research institutes, university and government laboratories, et cetera, in a country. Only 0.5% of the Mexican Gross
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Domestic Product is spend on R&D .
Guadalajaras Creative Digital City
In 2012 the ambitious project to construct a creative digital city was announced. In 2014 they began building the
Creative Digital City. The goal of this project is to create a world-class hub of digital media development. CDC will
span the creative industries from TV, cinema and advertising to videogames, digital animation, interactive
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multimedia and eLearning. It has been a creative city for years .
Popularity Android Mexico
Android is obviously the most popular smartphone operating system in Mexico, with 85,2% of all smartphones in
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January 2015 .

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"HIerarchical Society." Kwintessential.co.uk. Retrieved on 1 Januar 2016.

"Information & Communication Technology definition." OECD. Retrieved on 1 January 2016.
"Internet Access Mexican Households." OECD. Retrieved on 1 January 2016.
"R&D Spending Mexico." OECD. Retrieved on 1 January 2016.
"Creative Digital City" Nearshore Americas. Retrieved on 1 January 2016.
"Market share smartphone operating system Mexico." Statista.com. Retrieved on 1 January 2016.
At this time, the following environmental issues play parts in Mexico:
- Scarcity of hazardous waste disposal facilities;
- Rural to urban migration;
- Natural freshwater resources scarce and polluted in North;
- Inaccessible and poor quality in centre and extreme southeast;
- Raw sewage and industrial effluents polluting rivers in urban areas;
- Deforestation;
- Widespread erosion;
- Desertification;
- Deteriorating agricultural lands;
- Serious air and water pollution in the national capital and urban centre along US-Mexico border;
- Land subsidence in Valley of Mexico caused by groundwater depletion.
Note: the government considers the lack of clean water and deforestation national security issues.
Mexico is party to the following international agreements

Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous
Wastes, Law of the Sea, Marine Dumping, Marine Life Conservation, Ozone Layer Protection, Ship Pollution,
Wetlands, Whaling.
The Environmental Performance Index (EPI) ranks how well countries perform on high-priority environmental issues
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in two broad policy areas: protection of human health from environmental harm and protection of ecosystems .
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The overall score of the country leads to a global ranking and an overall score out of 100. Mexico ranks on the 65
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place on earth with an overall score of 55,03 out of hundred .

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World Risk Index

The World Risk Index is a list of countries by natural disaster risk. The report systematically considers a countrys
vulnerability, and its exposure to natural hazards to determine a ranking of countries around the world based on
their disaster risk. The WRI is based on 28 indicators and research data, which are globally freely available, and
results in a global risk ranking and maps, which allow for comparison between countries. Risk is at its highest where
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a high level op exposure to natural hazards coincides with very vulnerable societies . The WRI for Mexico is
6,23%.
In the largest part of Mexico limited safety restrictions are active. Hurricane damaged Mexicos infrastructure in
some parts of the country. Especially in Colima, Jalisco and Michoacn. In federal state Guerrero there is agitation
due to the disappearance of 43 students in September 2014. A lot of demonstrations and confrontations with the
police take place.
Federal state Tamaulipas is considered dangerous due to criminality and violence between rival (drugs) gangs. In
the border region between Mexico and USA there are safety regulations because of actions and criminality
through gangs. In other parts of Mexico people should take criminality in mind.
Political (& Legal)

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Mexico is being assessed with 46% political stability. There are no restrictive measures applicable to Mexico.
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found . Mexico doesnt charge import duties and charges 16% sales tax.
Trade promotions
For years and years actually centuries have passed the relationship between Japan and Mexico is very strong.
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Since 2005 both countries signed the Free Trade Agreement and Economic Partnership Agreement .

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XV. DESTEP BRAZIL

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Demographic
Brazil's rapid fertility decline since the 1960s is the main factor behind the country's slowing population growth
rate, aging population, and fast-paced demographic transition. Brazil has not taken full advantage of its large
working-age population to develop its human capital and strengthen its social and economic institutions but is
funding a study abroad program to bring advanced skills back to the country. The current favorable age structure
will begin to shift around 2025, with the labor force shrinking and the elderly starting to compose an increasing
share of the total population. Well-funded public pensions have nearly wiped out poverty among the elderly, and
Bolsa Familia and other social programs have lifted tens of millions out of poverty. More than half of Brazil's
population is considered middle class, but poverty and income inequality levels remain high; the Northeast, North,
and Center-West, women, and black, mixed race, and indigenous populations are disproportionately affected.
Disparities in opportunities foster social exclusion and contribute to Brazil's high crime rate, particularly violent
crime in cities and favelas.
Brazil has traditionally been a net recipient of immigrants, with its southeast being the prime destination. After the
importation of African slaves was outlawed in the mid-19th century, Brazil sought Europeans (Italians, Portuguese,
Spaniards, and Germans) and later Asians (Japanese) to work in agriculture, especially coffee cultivation. Recent
immigrants come mainly from Argentina, Chile, and Andean countries (many are unskilled illegal migrants) or are
returning Brazilian nationals. Since Brazil's economic downturn in the 1980s, emigration to the United States,
Europe, and Japan has been rising but is negligible relative to Brazil's total population. The majority of these
emigrants are well-educated and middle-class. Fewer Brazilian peasants are emigrating to neighboring countries
to take up agricultural work.
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In July 2015 Brazil counts 204,259,812 citizens. This means that Brazil is the 6 largest country in the world.
0-14 years:
23,27%
15-24 years:
16,47%
25-54 years:
43,80%
55-64 years:
8,66%
65 years and over:
7,8%

The median age in Brazil is 31,1 years old. The population grows every year with 0,77%. The average sex ratio of
the total population is 0,97 males for every woman. The life expectancy at birth is on average 75,65 years old.
Brazilian people are divided in multiple ethic groups, but the largest group is white with 47,7%, followed by
Mulatto (mixed white and black) with 43,1% of the people belonging to this group. The other commonly
represented group are black 7,6%, Asian 1,1% and indigenous 0,4%.

Brazil is located in Eastern South America, bordering the Atlantic Ocean and countries such as Argentina, Bolivia
and Colombia. The capital city is Brasilia with almost 4.155 million citizens. The largest city in Brazil is Sao Paulo
with 21.066 million citizens, Rio de Janeiro with 12.902 million and Belo Horizonte with 5.716 million residents.
85,7% of total population lives in urban areas.
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Brazil covers an area of 8,515,770 square kilometres and is 5 largest country in the world. The Brazilian climate is
mostly tropical, but temperate in the south with mostly flat to rolling lowlands in the north, some plains, hills,
mountains and narrow coastal belt.

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"Demographic profile."CIA.gov, World Fact Book. Retrieved on 30 December 2015.
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Economic
Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly
expanding middle class, Brazil's economy outweighs that of all other South American countries, and Brazil is
expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability,
building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated
and domestically held instruments. Since 2008, Brazil became a net external creditor and all three of the major
ratings agencies awarded investment grade status to its debt.
After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. Brazil experienced
two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit
dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and
investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. GDP
growth has slowed since 2011, due to several factors, including: overdependence on exports of raw commodities,
low productivity, high operational costs, persistently high inflation, and low levels of investment. After reaching
historic lows of 4.5% in early 2014, the unemployment rate remains low, but is rising. Brazil's traditionally high level
of income inequality has declined for each of the last 15 years.
Brazils fiscal and current account balances have eroded during the past four years as the government attempted
to boost economic growth through targeted tax cuts for industry and incentives to spur household consumption.
After winning reelection in October 2014 by a historically narrow margin, President Dilma ROUSSEFF appointed a
new economic team led by Finance Minister Joaquim LEVY, who introduced a fiscal austerity package intended to
restore the primary account surplus to 1.2% of GDP and preserve the country's investment-grade sovereign credit
rating.
Brazil seeks to strengthen its workforce and its economy over the long run by imposing local content and
technology transfer requirements on foreign businesses, by investing in education through social programs such
as Bolsa Familia and the Brazil Science Mobility Program, and by investing in research in the areas of space,
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nanotechnology, healthcare, and energy .
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"Economy overview Brazil." World Fact Book, CIA.gov. Retrieved on 30 December 2015.

performance among many of the 20 largest
emerging economies which together account for
27 percent of global GDP in terms of the
functioning of their institutions, as well as in
establishing efficient product and labour markets. In
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particular, six of those countries rank below the 100
mark: Argentina, Brazil, Egypt, Mexico, Pakistan and
Venezuela. A further eight countries rank lower than
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the 100 mark in at least one of the three categories
(1. Boosting competition, esp. in strategic sectors of
the economy by removing bottlenecks and barriers
to entry, 2. Making the labour markets more flexible
and more effective at using all existing talent and 3.
Improving the efficiency of public institutions, which
is also crucial to ensure an effective implementation
of structural reforms). Furthermore the GCI results
also point to a lack of progress over time. Only three
countries have recorded higher values in all areas
since 2010: Malaysia, the Philippines and the Russian
Federation. Following the Global Competitive Index
survey Brazil is ranked with a score of 4,3 (on a scale
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of one to seven) 57 place out of 144 countries
researched.
Trade relations
Brazil-Japan relations refer to the bilateral relationship of Brazil and Japan. Japan first established diplomatic
relations with Brazil in 1895. Japan used foreign aid to promote its trade with Brazil after World War II. Direct
investment was used to develop business in Brazil. More Japanese emigrants are found in Brazil than in any other
country, giving Japanese Brazilians a significant demographic presence in Brazil.
According to a 2013 BBC World Service Poll, 71% of Brazilians view Japans influence positively, with only 10%
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expressive a negative view, making Brazil one of the most pro-Japanese nations in the world .
Financial data
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can have damaging economic and social consequences. Brazils inflation rate for 2014 is +6,3% .
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scale as well: they impact the real return of an investors portfolio . Brazils exchange rate is 44,1% .

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"Inflation Rates Brazil." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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Brazils Gross Domestic Product official exchange rate is $2.347 trillion in 2014. The GDP value of Brazil represents
3,78% of the world economy. GDP in Brazil averaged 586,15 USD Billion from 1960 until 2014, reaching an all time
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high of 2615,19 USD Billion in 2011 and a record low of 15,17 USD Billion in 1960 .
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United States . The GDP PPP per resident of Brazil is $16,200.
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based on the 2011 ICP round . The GNI PPP per capita in USD in Brazil is $14,750 .
Exports
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Brazil exports for $224.600 billion every year
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. With this, Brazil is on the 24 place of all countries in the world.
Consumer Electronics Market393

The Brazilian consumer electronics market faces a completely different economic situation in 2015 than it did
earlier in the review period. A downturn in the local economy resulted in limited access to credit for consumers,
higher interest rates and rising unemployment. Together with other unfavourable economic indicators, these
conditions had a negative impact on demand for consumer electronics in general. Smartphones and tablets
continued to perform relatively well as compared to other categories, but even these star performances saw
volume growth rates slow due to the economic downturn.
Due to the economic downturn, in 2015 manufacturers and retailers of consumer electronics in Brazil were even
more reliant than usual on seasonal sales periods/dates such as Christmas and Black Friday. Similarly, as the
downturn resulted in budgetary restrictions, consumers were particularly price sensitive, with many waiting for
seasonal sales of actively seeking out special offers before buying new laptops, televisions, tablets, home cinema
and speaker systems et cetera. All of this served intensifies competition among manufacturers and retailers alike
across the consumer electronics market.
Samsung Electronics remained the leading manufacturer in consumer electronics in Brazil in retail volume sales
terms in 2015, followed by LG Electronics. Samsung was able to maintain a strong overall lead thanks to sustained
investment in its product portfolio, marketing campaigns and good relationships with retail chains. Moreover, the
company continued to run very aggressive sales campaigns, which helped to ensure it maintained a strong
presence in key consumer electronics categories such as televisions, smartphones, tablets and laptops.
As the economic downturn caused demand for consumer electronics to slow in 2015, electronics and appliance
specialist retailers had to adjust their operations to maintain profitability and, in some cases, to survive. Ever major
chains were forces to cut expenses by shutting down some outlets, reducing personnel numbers and
renegotiating with manufacturers in order to break even and continue operation. Thanks to their competitive

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"GDP Brazil." Trading Economics. Retrieved on 28 December 2015.

pricing strategies, operators in the Internet retailing channel weathered the change in economic conditions better
than their store-based counterparts. The stronger performance of internet retailing also reflected the increasing
tendency of Brazilians to compare prices and read product reviews online before buying, as well as growing
appreciation for the convenience of online shopping generally.
Given the depth of the economic recession in 015, it is expected that demand for consumer electronics in Brazil
will remain weak in 2016. The downturn has led to Brazilians to cut spending on all kinds of goods, particularly
non-essentials like consumer electronics products. It is unlikely that there will be any significant improvement in
performance of the local consumer electronics market until at least 2017, though any such recovery will depend on
government incentives and macroeconomic conditions.
BRIC Market394
Brazil holds its place as the B in BRIC, an acronym that stands for Brazil, Russia, India and China and represents
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the worlds fastest growing economies. Despite its rapid economic success as the worlds 8 largest economy,
Brazil is still considered a developing country according to the International Monetary Funds World Economic
Outlook Report. With the restrictive law on importation of hardware in Brazil, the prices of computers are about
twice the price in the United States. Surprisingly however, there is a technology boom going on in Sao Paulo,
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Brazil. The reason lies in software for Web and mobile development. Brazil has the 5 largest number of mobile
phone and Internet users in the world. According to an article by Claudionor Coelho in the EE Times, there are 189
million mobile phones 200 million tech-savvy consumers, and an exploding demand for PCs, leading to an
increase in Internet usage in Brazil. With the worlds third-largest stock exchange, its no question that multinational
companies including ARM, Freescale, Google and Intel have increased their investments in Brazils high-tech
business sector.
Social (& Cultural)
Better life index Brazil395

Brazil has made tremendous progress over the last decade in terms of improving the quality of life of its citizens. In
recent years, the country has seen a track record of inclusive growth and poverty reduction. Notwithstanding, Brazil
performs well in only a few measures of well being relative to most other countries in the Better Life Index. Brazil
ranks above the average in subjective wellbeing, work-life balance, and social connections, but below average in
civic engagement, housing, environmental quality, health status, personal security, education and skills.
Money, while it cannot buy happiness, is an important means to achieving higher living standards. In Brazil, the
average household net-adjusted disposable income per capita is lower than the OECD average of $24908 a year.
In terms of employment, about 67% of people aged 15 to 64 in Brazil have a paid job, slightly more than the OECD
employment average of 65%. Some 79% of men are in paid work, compared with 60% of women. In Brazil, 10% of
employees work very long hours, lower than the OECD average of 13%, with 13% of men working very long hours
compared with 7% for women.
Good education and skills are important requisites for finding a job. In Brazil, 45% of adults aged 25-64 have
completed upper secondary education, less than the OECD average of 75%. This is truer of women than men, as
42% of men have successfully completed high school compared with 47% of women. In terms of education
quality, the average student scored 402 in reading literacy, maths and science in the OECDs Program for
International Student Assessment (PISA). This score is lower than the OECD average of 497. The gender gap in
Brazil is narrower than for the OECD overall, with girls scoring 404 and boys 400, compared with an average OECD
difference of 8 points in favor of girls.
In terms of health, life expectancy at birth in Brazil is 74 years, six years lower than the OECD average of 80 years.
Life expectancy for women is 77 years, compared with 70 for men. The level of atmospheric PM10 tiny air
pollutant particles small enough to enter and cause damage to the lungs is 18.3 micrograms per cubic meter in

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"Brazilian Economy." Stanford University. Retrieved on 1 January 2016.

"Better Life Index." OECD Better Life Index. Retrieved 19 December 2016.
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large urban areas, below the OECD average of 20.1 micrograms per cubic meter. Brazil could do better in terms of
water quality, as 72% of people say they are satisfied with the quality of their water, less than the OECD average.
Concerning the public sphere, there is a moderate sense of community and high levels of civic participation in
Brazil, where 90% of people believe that they know someone they could rely on in time of need, more than the
OECD average of 88%. Voter turnout, a measure of citizens participation in the political process, was 79%, higher
than the OECD average of 68%. Voter turnout for the top 20% of the population is an estimated 81% and for the
bottom 20% it is an estimated 80%, much narrower than the OECD average gap of 13 percentage points.
In general, Brazilians are more satisfied with their lives than the OECD average. When asked to rate their general
satisfaction with life on a scale from 0 to 10, Brazilians gave it a 7.0 grade, higher than the OECD average of 6.6.
Social and cultural developments in Brazil396

With all eyes on Brazil for the 2014 World Cup and the upcoming 2016 Olympics, there is no better time than
now for brands exploring opportunities to break into the Brazilian market. Brazil is a young nation; the average age
is 30.7 while 51% of Brazilians are aged under 30 years old. Within that, Brazilians are amongst some of the most
socially engaged people in the world and the prevalence of digital media creates endless opportunities for
brands. Some top line stats:
8 out of 10 young Brazilians are on Facebook;
67 million Brazilians used mobile Internet in 2013.
59,5% of Brazilians will be using the Internet by 2017.
Brazilian consumers use social media to broadcast their experiences and opinions. Thus, there is a huge
opportunity for brands to develop influential and passionate brand advocates. And the development of new
markets in different Brazilian cities offers opportunities for global brands
with ambitions to expand.
There is an emerging rich class within Brazil: the country is home to 124
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billionaires and some 194,000 millionaires the 12 largest group of
millionaires in the world. Further, Brazil expects 46 new millionaires to
emerge, per day, in 2014.
Appetite for luxury
Thus there is an increasing demand for luxury products, which has
prompted brands like Tiffany & Co, Prada, Bentley, Herms and Ferrari
to successfully open stores in the country in recent years. A key symbol
of this growing wealth is the ever-expanding aircraft market, which sees
So Paulo maintain the largest city helicopter fleet in the world.
Conscious consumerism
Meanwhile, a new middle class of empowered millennials has emerged a large consumer group equivalent to the
size of the population of the UK. This cohort demand higher quality services, better products and fair prices.
Further, they are cautious consumers who take time to research and reflect on where and how they should spend
their money and are increasingly likely to research and purchase products through online marketplaces.
Interestingly, our study revealed that 81% of Brazilians believe spending wisely is more important than earning
more money.
Local matters
Brazilians are incredibly proud people; while they recognise their countrys flaws they also protect and promote its
strengths with great passion. Although their fun and vibrant culture is ever apparent, international brands that wish
to succeed in this country must develop a deep understanding of Brazilian culture and needs, which differ not only
from the rest of the world, but from city to city too.

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"A look a key trends and factors for international brands in Brazil." Hall & Partners via Warc.com. Retrieved on 1 January 2016.
Brazilian consumers are increasingly demanding higher quality products from both global and local brands. And
with 8 out of 10 Brazilians saying they trust local brands over international brands those hoping to harness the
Brazilian market should think about ways they can become committed and invested parts of the community as this
will help build consumer trust.
Thus, local investment is critical for global brands that wish to succeed in Brazil. For example it is inadequate to
simply import cars into the country as consumer expect car parts to be available locally, and expect brandspecialised mechanics to service their vehicle.
Similarly, adapting marketing campaigns and products to embrace what matters and what is needed is necessary
for a brands longevity within Brazil. By way of example, McDonalds, the fast food restaurant, adapted its menu to
reflect local tastes by including rice and beans.
Party-loving digital pioneers397

With a sexy, party-loving reputation, Brazilians have become global broadcasters of their happiness and life
through a strong presence on social media, and the Internet is further driving leisure and consumption among
these digital pioneers.
Rise of class398
From 94,9 million Brazilians in the middle class, to 160 million in 2016. A rapid increase in socioeconomic inclusion
creates opportunities for brands that focus on the needs of a new class looking for a better standard of life. This is
important for brands that can demonstrate a social mission and commitment to helping consumers thrive.
Education399
Elected officials of Brazil are pushing the development of technology centers throughout the country. With one of
the top Computer Science undergraduate and graduate programs in Brazil, Universidad Federal de Minas Geraisis
(UFMG) is an exemplary model of a world-class educational infrastructure. UFMG staffs professors from Stanford,
Princeton, Oxford, UCLA, and other prestigious universities around the world. The effects of focusing on the
development of educational infrastructure have had a tremendous impact, as new tech-based companies are
created. For instance, the first Brazilian-run semiconductor manufacturing facility is in production and multinational
companies are investing in Brazil. IBM is going to construct their first new research facility in 12 years in Brazil.
Nearly half of all IT costs in South America can be attributed to Brazil, demonstrating Brazil's power as a technology
hub in the region.
In 2003, a team at the School of the Future, an interdisciplinary research laboratory of the University of Sao Paulo,
began formulating a survey inspired by the Campus Computing Project, which served to analyze how colleges and
universities in the U.S. use information technology. The survey asked questions covering topics such as policy,
infrastructure, portals and investments. In 2005, the project in Brazil received sponsorship by SunGard Higher
Education, Adobe, Macromedia, Intel, and Microsoft in order to reach out to all the countries from Mexico to the
southernmost tip of South America. The results revealed:
The U.S., Brazil, and other Latin American countries are highly concerned with network security when
developing policy. They each recommend the use of open-source programs for research purposes.
IT Management reorganized across campuses in Brazil and other countries in Latin America in 2005 and
the preceding two years.
From 2004 to 2005, the prevalence of wireless services on campuses in Brazil increased from 9% to 43%.
Neither the U.S., nor Brazil, nor other Latin American countries have significantly reduced their spending
for information technology.
Campus portals in Brazil and other Latin American countries don't offer as many services as U.S. campus
portals do, probably due to the differing starts of usage.
Portals in the U.S. offer tutorials and training in information technology, as opposed to in Brazil and other
Latin American countries where such a feature is rare.

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"Party-loving digital pioneers." Issuu.com. Hall & Partners. Retrieved on 1 January 2016.
"Rapid increase middle-income class." Issuu.com. Hall & Partner. Retrieved on 1 January 2016.
"Brazilian Education." Stanford University. Retrieved on 1 January 2016.
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Taking the initiative to construct a survey is highly beneficial to the technological and economical development of
Brazil and other Latin American countries. Findings such as the increase of wireless service in Brazil, and the nonreduction in information technology spending among the three groups, exemplifies the increase in technological
development among the developing nations in Latin America. Furthermore, the negative findings that reveal the
gaps between the strongly developed infrastructure of the U.S. and Latin American countries are useful in
influencing how these countries should make new policies in regards to technology education in order to improve
their technology infrastructure.
The School of the Future has also started a project called Telecurso 2000, which aids students who have dropped
out of school by preparing them for exams that are equivalent to elementary or secondary education. The program
is broadcasted on television and is available in videocassette form and in book format.
Work Culture400
There are laws in Brazil that require all foreign companies to hire locally. With the huge influx of international
companies investing in Brazil as a result of the technological boom, such as China's direct investment of $17 billion
in 2010, Brazilians have more opportunities to stay and support their home economies. The presence of native
workers staying in the country has lead to the development of a distinct labor culture. Brazilians enjoy many laborfriendly protections, including one-month annual bonuses and meal and transportation stipends. Brazilians
encourage personal relationships among co-workers. Asian executives have commented on the lax work ethic of
Brazilians, and their lack of punctuality. Nevertheless, Charles Tang, founder of the Brazil-China chamber of trade
and industry stated that despite being informal, Brazilian workers are just as professional. In fact, Brazilian workers
were 30 percent more productive than their Chinese counterparts in 2010.
Technological
Information and communication technology (ICT) refers to both different types of communications networks and
the technologies used in them. The ICT sector combines manufacturing and services industries whose products
primarily fulfil of enable the function of the information processing and communication by electronic means,
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including transmission and display .
Smart meting in Brazil402

The usage of smart metering equipment is changing the way basic services are managed in Brazil and other
countries. Over the past few years, customers worldwide have become more conscious about the consumption of
resources like water and electricity. New technologies are being developed to help reduce the waste and control
consumption, resulting in a larges economy in domestic expenses. This is no different in Brazil, although most
current smart meting projects are focused on the electricity market in order to create a smart grid.
Industrial Internet of Things (IoT)403
The usage of IoT technologies by Brazilian industries should increase over the next view years. The Internet of
Things technology sector in Brazil has shown continuous growth in recent years, according to recent research. A
study from 2013 by Qualcomm regarding the global markets of M2M technologies found that Brazil had the third
largest base for this type of equipment in the world, with more connections than countries like Japan and the UK.
Payment to Merchants in Brazil404
When contracting payment services from card acquires in Brazil some aspects of the national standards should be
taken into consideration in order for e-commerces to plan their monthly balance. E-commerces that plan to
expand in the Brazilian market have multiple options to allow for payments to be collected from local customers. It
is actually possible to receive payment from Brazilians when adopting the services of international acquires,
however this strategy severely limits the size of available audience, as only a small part of the population has
access to credit cards enables for international transactions. For most scenarios, registering a bank account in

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"Brazilian Work Culture." Stanford University. Retrieved on 1 January 2016.

"Information & Communication Technology definition." OECD. Retrieved on 1 January 2016.
"Smart metering in Brazil." TechinBrazil.com. Retrieved on 1 January 2016.
"Internet of Things Brazil." TechinBrazil.com. Retrieved on 1 January 2016.
"Payment to Merchants in Brazil." TechinBrazil.com. Retrieved on 1 January 2016.
Brazil and partnering with a local acquirer is the most valuable of the options available, as it allows for payment to
be received from national credit cards and even from methods specific to the country like Boletos Bancarios.
Credit Cards are currently the most used payment method for online purchases in Brazil, and also the one that
requires the most time for transaction sums to be delivered to merchants. Brazilian acquirers require payments to
be delivered 30 days following the transaction processing, or more if there are multiple instalments involved.
In the case of payments split into multiple monthly instalments, 30 days are required for each parcel added.
Purchases split into two instalments, for example, have the first half of the transaction sum received after 30 days
since its processing and the other half delivered 30 days later. Considering purchases in Brazil are commonly split
into three or more months, this means that the payment from a single transaction might only be fully received by
merchants upwards of 90 days after being processed by acquirers.
Internet usage405
The number of Internet users in Brazil is 113.7 million, or Internet user penetration of 55.7%. They spend on
average 28.5 hours on Internet every month. Google is the most popular search engine in Brazil, based on the
market share of 96,7%. There are 73 million mobile phone Internet users.
Popularity Android Brazil
Android is obviously the most popular smartphone operating system in Brazil, with 77,72% of all smartphones in
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July 2015 . This is more than tripled since January 2012, when less than 25% of the smartphone operating
systems in Brazil were Android.

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"Internet usage Brazil." Statista.com. Retrieved on 1 January 2016.

"Market share smartphone operating system Mexico." Statista.com. Retrieved on 1 January 2016.
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At this time, the following environmental issues play parts in Brazil:
- Deforestation in Amazon Basis destroys the habitat and endangers a multitude of plant and animal species
indigenous to the area;
- There is a lucrative illegal wildlife;
- Air and water pollution in Rio de Janeiro, Sao Paulo and several other large cities;
- Land degradation and water pollution caused by improper mining activities;
- Wetland degradation;
- Severe oil spills.
Brazil is party to the following international agreements
Antarctic-Environmental Protocol, Antarctic-Marine Living Resources, Antarctic Seals, Antarctic Treaty, Biodiversity,
Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental
Modification, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution,
Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling.
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The overall score of the country leads to a global ranking and an overall score out of 100. Brazil ranks on the 77
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place on earth with an overall score of 52,97 out of hundred .
World Risk Index
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a high level op exposure to natural hazards coincides with very vulnerable societies . The WRI for Brazil is 4,21%.
In whole of Brazil limited safety restrictions are aligned, mostly due to criminality. Tourist areas are most
dangerous. Also in bigger cities, such as Rio de Janeiro en Sao Paulo, often demonstrations take place.
Political (& Legal)

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Brazil is being assessed with 47% political stability. There are no import restrictions applicable to Brazil.

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found . Brazil charges 16% import duties and charges an product-depending sales tax.
Trade promotions
Brazil-Japan relations refer to the bilateral relationship of Brazil and Japan. Japan first established diplomatic
relations with Brazil in 1895. Japan used foreign aid to promote its trade with Brazil after World War II. Direct
investment was used to develop business in Brazil. More Japanese emigrants are found in Brazil than in any other
country, giving Japanese Brazilians a significant demographic presence in Brazil.
According to a 2013 BBC World Service Poll, 71% of Brazilians view Japans influence positively, with only 10%
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expressive a negative view, making Brazil one of the most pro-Japanese nations in the world .
Promoting education414
Brazil has implemented many policies in order to promote education, starting with policies meant to provide
incentives for staying in school such as offering free meals and grants for low-income families with children
attending school, resulting in 94 percent of children registered in grades 1-8. Brazil makes significant investments
in public education, as shown by the diminishing number of students enrolled in private schools in 1990.
Since the 1980s, many countries in South America have abandoned protectionist economic policies and moved
towards economic liberalizations, privatization, and deregulation. As a result, the government tends to facilitate
rather than choose and control the development of new technologies.

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"Promoting Education." Stanford University. Retrieved on 1 January 2016.
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XVI. DESTEP CHINA

Demographic
In July 2015 China counts 1,367,485,388 citizens. This means that China is the largest country in the world.
0-14 years:
17,08%
15-24 years:
13,82%
25-54 years:
47,95%
55-64 years:
11,14%
65 years and over:
10,01%

The median age in China is 36,8 years old. The population grows every year with 0,45%. The average sex ratio of
the total population is 1.06 males for every woman. In October 2015, the Chinese Government announced that it
would change its rules to allow all couples to have two children instead of just one, as mandated in 1979. The new
policy to be officially adopted in March 2016 is being implemented to address Chinas rapidly aging population
and economic needs.
Chinese people are divided in multiple ethic groups, but the largest group is Han Chinese with 91,6% of the
people belonging to this group. The standard language spoken is Chinese or Mandarin.

China is located in Eastern Asia, bordering the East China Sea, Korea Bay, Yellow Sea, and South China Sea and
between North Korea and Vietnam. China covers an area of 9,596,960 square kilometres and is the fourth largest
country in the world. It is slightly smaller than the United States of America. Neighbouring countries are among
other Mongolia, Burma, India, Russia and Kazakhstan.
The Chinese climate is extremely diverse: from tropical in the south to subarctic in the north. Chinese terrain is
characterised mostly by mountains, high plateaus and deserts in the west. In the east it is characterised by plains,
deltas and hills in east.
Economic
Since the late 1970s China has moved from a closed, centrally planned system to a more market-oriented one that
plays a major global role - in 2010 China became the world's largest exporter. Reforms began with the phasing out
of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization,
increased autonomy for state enterprises, growth of the private sector, development of stock markets and a
modern banking system, and opening to foreign trade and investment. China has implemented reforms in a
gradualist fashion. In recent years, China has renewed its support for state-owned enterprises in sectors
considered important to "economic security," explicitly looking to foster globally competitive industries. The
restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in
GDP since 1978. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in
2014 stood as the largest economy in the world, surpassing the US for the first time in modern history. Still, China's
per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, in July 2005 China moved to an exchange rate
system that references a basket of currencies. From mid-2005 to late 2008 cumulative appreciation of the
Renminbi against the US dollar was more than 20%, but the exchange rate remained virtually pegged to the dollar
from the onset of the global financial crisis until June 2010, when Beijing allowed resumption of a gradual
appreciation. In 2014 the Peoples Bank of China (PBOC) doubled the daily trading band within which the RMB is
permitted to fluctuate.
The Chinese government faces numerous economic challenges, including:

Reducing its high domestic savings rate and correspondingly low domestic consumption;
Facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and
increasing numbers of college graduates;
Reducing corruption and other economic crimes;
Containing environmental damage and social strife related to the economy's rapid transformation.
Economic development has progressed further in coastal provinces than in the interior, and by 2014 more than
274 million migrant workers and their dependents had relocated to urban areas to find work. One consequence
of population control policy is that China is now one of the most rapidly aging countries in the world.
Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table,
especially in the North - is another long-term problem. China continues to lose arable land because of erosion and
economic development. The Chinese government is seeking to add energy production capacity from sources
other than coal and oil, focusing on nuclear and alternative energy development.
Several factors are converging to slow
China's growth, including debt overhang
from its credit-fueled stimulus program,
industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow
recovery of China's trading partners. The
government's 12th Five-Year Plan, adopted in
March 2011 and reiterated at the Communist
Party's "Third Plenum" meeting in November
2013, emphasizes continued economic
reforms and the need to increase domestic
consumption in order to make the economy
less dependent in the future on fixed
investments, exports, and heavy industry.
However, China has made only marginal
progress toward these rebalancing goals. The
new government of President XI Jinping has
signaled a greater willingness to undertake
reforms that focus on China's long-term
economic health, including giving the market
a more decisive role in allocating resources.
In 2014 China agreed to begin limiting
carbon dioxide emissions by 2030. China also
implemented several economic reforms in
2014, including passing legislation to allow
local governments to issue bonds, opening
several state-owned enterprises to further
private investment, loosening the one-child
policy, passing harsher pollution fines, and
cutting administrative red tape.
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China is an innovating, fast growing emerging market. Following the Global Competitive Index survey the country
th
ranked with a score of 4,89 (on a scale of one to seven) 28 place out of 144 countries researched. Among the
BRICs, China has lost 22 places in terms of market competition since 2010, and both India and Brazil have lost
considerable ground in all three areas.
Trade relations
Japan and China are geographically separated by the East China Sea. The relationship between China and Japan
has been strained at times by Japans refusal to acknowledge its wartime past to satisfaction of China. SinoJapanese relations warmed considerably after Shinzo Abe became the Prime Minister of Japan in September
2006.
Financial data
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can have damaging economic and social consequences. Chinas inflation rate for 2014 is +2% .
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scale as well: they impact the real return of an investors portfolio . Chinas exchange rate is 5,2% .
Chinas Gross Domestic Product official exchange rate is $10.36 trillion. An important caveat here is that Chinas
exchange rate is determined by fiat, rather than by market forces. The official exchange rate measure of GDP is not
an accurate measure of Chinas output. GDP at the official exchange rate substantially understates the actual level
of Chinas output vis--vis the rest of the world. In Chinas situation the GDP Purchasing Power Parity provides the
best measure for comparing output across countries. 2014s GDP real growth rate slightly lower than previous
years is 7,3%.
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United States . The GDP PPP per resident of China is $13.200.

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"Inflation Rates China." CIA.gov. World Fact Book. Retrieved on 8 December 2014.
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based on the 2011 ICP round. The GNI PPP per capita in USD in China is $11.850 .
Exports
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China exports for $2.343.000,00 Million every year . This is more than all the countries in the European Union
together. With this, China is on the first place of all countries in the world in total exported products and services!
China exports 23,7% of their GDP.
Consumer Electronics Market

In 2015 the Chinese revenue on consumer electronics will grow with 27,3%. For 2015 the absolute revenue is
27.918,8 million U.S. Dollar. The Chinese Average Revenue Per User (ARPU) per year in USD in for 2015 is $197,65
U.S. Dollar. The penetration of consumer electronics with more than 153 million users in the Chinese market is
13,6%.
With a 27,3% market growth in the consumer electronics market in 2015, China has a huge potential to grow
further. The market size is for consumer electronics will be doubled in 2020. The Compound Annual Growth Rate
from 2014-2020 is 7,5%.
Foreign investors seek business in China mainly because of three things: size of the market, the very low cost of
labour and Chinas growth potential together.
Consumption and demand423

Although the growth of the economy slowed down in China in 2015, overall consumer electronics continued to
grow, especially in new categories of wearable electronics and OLED TVs due to their innovation and smart
functions. Nevertheless, some traditional electronics such as imaging devices, portable media player, home audio
and cinema and portable players suffered declines in 2015 due to threats from smart devices including
smartphones tablets and smart TVs.
In 2015, functions of consumer electronics were upgraded to be smarter. For instance, smart audios developed by
JD.com can be controlled by sound to download music and audio books automatically to the cloud, answer
queries including weather forecasts, daily news and voice messages and control smart home appliances, such as
lightning, switches, air conditioners, humidifiers, purifiers and sweepers. Domestic manufacturers accounted for
increasing shares of consumer electronics due to improved technology and growing brand reputation. In 2015,
Xiaomi Technology Co Ltd ranked first due to its extraordinary performance in smartphones, smart TVs and
wearable electronics. Furthermore, the large effort within research and development and innovation contributed
to its success. Conversely, international brands experienced depression due to the threats for domestic brands.
Traditional electronics and appliance specialist retailers maintained its dominant position in consumer electronics
in China. It upgraded flagship stores to enhance the consumer experience and interaction. Nevertheless, the
channel was threated heavily by Internet retailing due to its enlarged delivery area. To survive competition from
internet retailing, electronics and appliance specialist retailers also opened its own e-commerce stores and made

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huge efforts to develop its logistics system, including establishing its own logistic infrastructure and cooperation
with other leading logistic companies.
The volume sales of consumer electronics will record slower growth over the forecast period mainly caused by the
economy slowdown and longer replacement cycle. As the market becomes statured, the growth rate of demand
will also slow down. Nevertheless, volume sales of innovative smart devices are predicted to grow. Meanwhile, with
growing disposal incomes, consumers will show a tendency to purchase high-end products.
Social (& Cultural)
Standards & Values

The cultural values of a country influence its national psychology and identity Citizens values and public opinions
are conveyed to state leaders through the media and other information channels, both directly and indirectly
influencing decisions on foreign policy. The traditional cultural values that influence the psyche of the Chinese
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people are harmony, benevolence, righteousness, courtesy, wisdom, honesty, loyalty and filial piety .
Of these, the core value is harmony. Harmony means proper and balanced coordination between things and
encompasses rationale, propriety and compatibility.
Benevolence, the core value of Confucianism, extends from the importance of familial ties and blood
connections and is held in high esteem by the Chinese.
Righteousness refers to justice and correctness.
Courtesy stresses modesty and prudence. It is about respecting laws and preventing misconduct.
Wisdom requires that one distinguish right from wrong, place capable people in suitable positions, know
oneself, and be resourceful.
Honesty refers to trustworthiness, integrity and credibility.
Loyalty stresses service to the motherland.
Filial piety is another important value in Confucianism.
Changing marketing communications market in China425

The marketing communications market in China is undergoing a huge transformation. Internet, social media and
the rise of information technology have generated a disruptive influence, and traditional media no longer has the
dominant discourse due to the reshaping of the traditional industry value chain, weakening of the distribution
channels, and closer communication between advertisers and consumers. The explosive growth of media contacts,
as well as the transparency and flattening of dissemination of information, has led to the changing business
marketing requirements.
Overall, three macro forces are driving the Chinese marketing communications market:
1. Economic transformation
2. Technological innovations
3. Rising consumption level
Under the influence of these three macro forces, the market experiences six transformations:
1. Disintermediation
2. Shift to nonlinear consumption
3. One-stop agency model
4. Value chain reconstruction
5. Industry restructure
6. Value chain expansion
The Matthew Effect on the marketing communications market will be intensified in the future, and market growth in
traditional advertising will continue to decline. The emerging Internet advertising market will lead the growth in the
overall advertising industry. Media, socialization, mobilized advertising and content subdivision will be the trend.

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"Core values Chinese." Carnegie-Tsinghua, center for global policy. Retrieved on 23 December 2015.
"Marketing Communications market in China." Predictions trends in 2025. Deloitte. Retrieved on 23 December 2015.
Managing the direction of development in the process of reform, building the corresponding ability and
organizational structure, and establishing sustainable competitiveness are challenges that marketing agencies are
facing. The key to solving these challenges is to build a business intelligence service and one-stop service ability to
help customers with sales conversion.
In order to achieve the goals of building sustainable core competitiveness, marketing agencies are required to
actively invest in business model transformation, establish scalability, enhance capital operation capability and
extend global reach.
Usage of new media in China426

On June 25 2013 a report about new media in China was presented. New media are widely considered as one of
the most exciting new emerging things at present, said Cai Jinhui, the assistant editor-in-chief of China Social
Sciences Academic Press. People are not just the consumers, users and beneficiaries of the new media, but also
their participators, researchers and promoters. The following are the top 10 new media trends in China:
1. News distribution through mobile Internet will become common.
2. The new media will become an important platform for the government to strengthen its administration
capacity.
3. Various new mobile applications will expand.
4. New media will reshape the landscape of other industries.
5. The independent innovation capacity of Chinas news media will be greatly enhanced.
6. The development of new media technologies and infrastructure will be accelerated.
7. News websites will step up the pace of going public.
8. Big data will drive every industry to reshape its structure.
9. The number of Wechat users will rise tremendously.
10. The number of Internet users in China will surpass 600 million.
Actually very common trends, practically the same as in other parts of the world of course due to globalisation.
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Social media trends in China: No Twitter, No Facebook, No YouTube

Since 2009 the Chinese government blocked Twitter, Facebook and YouTube after peaceful protests by Uighurs,
Chinas Muslim ethnic minority turned into deadly riots in Xinjiang.
Social media usage continues to grow across the world, and China is no exception. With an Internet user
population of 650 million (nearly twice the population of the entire United States) and censorship laws that prohibit
those consumers from participating in the social networks that dominate the rest of the world popularity, China did
the inevitable and created their own platforms and networks with some, like Tencent Weibo, boasting user bases
exceeding half a billion accounts (for comparison, consider that Facebook has around 1.3 billion users).
Without a China-specific social strategy, all of those painstakingly crafted hashtags and that wealth of carefully
curated content goes unseen and unheard by a population with extraordinary buying power and a propensity for
brand hopping. Brand that arent investing where Chinese users are spending their time are missing a critical
opportunity to connect and influence purchase decisions.
Top 10 social networking sites in China
1. Tencent QQ (830 Million users) ! Instant messaging software services that also offers a online social
games, music, shopping, micro blogging, and group and voice chat. QQ has more users than LinkedIn,
Twitter and Instagram put together
2. QZone (755 Million users) ! Social networking website where users can write blogs, share photos, music
and videos.
3. Sina Weibo (600 Million users) ! Chinese micro blogging website A hybrid of Twitter and Facebook.
4. WeChat (468 Million users) ! Micro Messaging App like Facebook Messaging and Whatsapp.

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"Top 10 new media trends in China." China.org.cn. Retrieved on 23 December 2015.

"2015 Chinese Social Media Statistics and Trends Infographic" Make a Websitehub.com. Retrieved on 26 December 2015.
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5.
6.
7.
8.
9.
Pengyou (260 Million users) ! A real-name social network with an emphasis on real friendships.
51.com (200 Million users) ! A social platform for the Chinese web gaming community.
Renren (195 Million users) ! The Chinese version of Facebook.
Jiayuan (120 Million users) ! The largest internet dating website of China.
Kaixin 001 (113 Million users) ! Cloned the most successful and well known Facebook applications to the
Chinese market.
10. Douban (75 Million users) ! Chinese SNS devoted to music, books, films and other hobbies.
Interesting Facts:
In 2014 the volume of social sharing in China went up by 65%. AFBEELDING
The Chinese spend on Average 90 minutes a day on social media sites.
88% of Chinese social media users are active on at least one social media network.
58% of all Chinese Internet users are also using social networks.
62% of Chinese Internet users do not reveal their true identity on social networking sites.
400 Million or 61% of Chinese web users use mobile devices to access social networks. Thats more than
the entire population of South America.
By 2017 it is predicted that there will be 745 Million Chinese mobile Netizens.
Chinese social media demographics: 43% of the women are active on social media and 57% men.
Chinese social media use by age: 19% are between 19 and 25 years old, 30% between 26-30 y/o, 21%
between 31 and 35 y/o, 12% are between 36-40 y/o and 18% is 40 years and older.
Digital trends China Augustus 2015428

Digital growth trends
Growth in the number of active Internet users with 6% (or 36 Million users) 12 months to July 2015.
Growth in the number of active social media users with 2% (14 Million users) 12 months to August 2015.
Growth in the number of mobile subscriptions with 8% (94 Million users) 12 months to January 2015.
Growth in the number of active mobile social users with 15% (77 Million users) in 12 months to August 205.
Share of web traffic
The share of web pages served on laptops & desktops decreased with 29% compared with August 2014.
The share of web pages served on mobile phones increased with 136% compared with August 2014.
The share of web pages served on tablets decreased with 22% compared with August 2014.
Internet use: rural vs. urban
Active Internet users living in Chinas urban areas are 473 Million, or a penetration of 64%.
Active Internet users living in Chinas rural areas are 186 Million, or a penetration of 30%.
Social media use
Total number of active social media users: 659 Million
Active social media users as a percentage of the total population: 48%.
Total number of active social user accessing via mobile 574 Million.
Active mobile social users as a percentage of the total population: 42%.
Regular mobile activities
Checked the weather online using mobile device: 22%.
Purchased a product online via a mobile device: 20%.
Used a social networking service via mobile device: 20%.
Chatted to someone via instant messenger or live chat tool on mobile: 20%.
Uploaded photos using a mobile device: 19%.

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"China digital trends 2015." Net Imperative.com. Retrieved on 28 December 2015.
Activities on mobile
276 Million people using mobile payment services on their mobile phone (penetration 20%).
270 Million people shop via mobile devices (m-commerce). Penetration 20%.
168 Million people making travel bookings via mobile devices. Penetration 12%.
E-commerce by device
18% of the population who used a PC to research a product to buy last month.
29% of the population who bought something online via a PC last month.
15% of the population who used a mobile phone to research a product to buy last month.
20% of the population who bought something online via a mobile phone last month.
Healthcare workforce
There is a shortage of doctors and nurses in China. More doctors are being trained, but most aim to leave the
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countryside in favour of the cities, leaving significant shortages in rural areas .
- Rising patriotism
- Shift of secondary cultural values through time
- High persistence of core cultural values
- Existence of subcultures
- Human development index
Social safety and benefits430
After 1992, when Jiang Zemin came into power with the support of Deng, economic reforms accelerated. The
priority during this period was reforming state enterprises so that they could compete in the market in an
increasingly open economy. At the same time, several rounds of negotiations at the General Agreement on Tariffs
and Trade were going on. The World Trade Organisation (WTO) put pressure on China to open its economy
further. According to the WTO entry requirements, state enterprises would need to operate in the same way as
private enterprises. To achieve this, Chinese enterprises had to be reformed. These reforms involved the following
aspects:
1. Lifetime employment Unemployment, was expressed as a period of xiagang, in which workers were laid
off, but continued to receive welfare benefits from former employers. To help people cope with the shock of
xiagang, a social safety net with three protection mechanisms was adopted: a social insurance against
unemployment; living allowances offered by the previous employers or the re-employment centres funded by
the local government and a minimum living standard guarantee for the unemployed.
2. Pensions In 1997, a basis pension insurance system to which enterprises and individuals would contribute
towards was set up. It comprised a social pooling account and an individual account. Further changes were
made in 2000, and the system is still in use today.
3. Healthcare - In 1998, a basic health insurance scheme that involved employer and individual contributions
emerged, where 30 percent of contributions put in a social pooling account. At the same time, hospitals
began to operate like private businesses. The idea was that competition would prompt hospitals to improve
productivity.
There has been increasingly large mutual dislike, hatred, and hostility between Japanese and Chinese people in
recent years. According to a 2014 BBC World Service Poll, 3% of Japanese people view Chinas influence
positively, with 73% expressing a negative view, the most negative perception of China in the world, while 5% of
Chinese people view Japanese influence positively, with 90% expressing a negative view, the most negative
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perception of Japan in the world .

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"Healthcare Workforce China." Wikipedia, China Medical Board. Retrieved on 21 December 2015.
"Social changes in China." A Changing China. Civil Service College Singapore. Retrieved on 21 December 2015.
"Relations China-Japan." BBC World Service Poll. Retrieved on 13 December 2015.
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Technological
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Top 10 Strategic Technology Trends for China in 2015-2016

Gartner, Inc. has identified the 10 most important technology trends for China in 2015 and 2015. Internet
businesses are key investors across the top 10 trends, led by Baidu, Alibaba Group and Tencent (AT) companies,
while government plays an important role in driving and improving Chinas IT environment. China is the third
largest market for enterprise IT spending, after the U.S. and Japan, according to Gartner forecasts.
While the list is similar to the global top 10, Chinas progress is inconsistent due to the local competitive landscape,
industrial environment, technology maturity and even cultural differences. The Top 10 Strategic Technology
Trends for China in 2015-2016 are:
1. Computing everywhere is changing how people experience their lives in China: the mobile Internet has
become an important part of Chinese consumers daily lives, with more than 1.4 billion mobile devices in
use. This trend, along with the Chinese governments effort to upgrade its industries through the Internet
Plus initiative, is driving computing everywhere.
2. Internet of Things (IoT) brings computer power to all devices: The Chinese government is driving projects,
such as smart cities and IoT, and Internet companies are promotes their smart device ecosystems. The
government and consumer markets represent the two most promising their opportunities for IoT products.
3. 3D Printing is approaching a critical inflection point: advances in materials science and 3D printing
methods, combined with lower-cost 3D printers, have brought the technology to a point in which it is
having a greater impact across more industries and is reaching out into the consumer space.
4. Advanced analytics (predictive and prescriptive knowledge) is on the rise, improving business operations
and user experiences with strong promotion by IT vendors and increasing adoption by organizations in
China. The Chinese governments Internet plus program targets accelerated development of mobile
Internet, big data, cloud computing, and the emergence of IoT and information technology/operational
technology (IT/OT) converged manufacturing.
5. Context-rich systems provide agility and responsiveness for business operations: The explosion of rich
customer data collected from Internet activity, connected homes and IoT devices will make context-rich
systems a reality. Chinas three major Internet giants (BAT) are driving development of context-rich systems
to transform the way a consumer brand and/or manufacturer-retailer networks engage with their
customers.
6. Smart machines extend our ability to address complex situations: smart machines are a hot topic in China
since the government and enterprises have recognized both the challenges from increasing labour costs
and the risk posed by an aging population. Although commercialization is still at an early stage in China,
many types of smart machines are emerging.
7. Cloud computing is a technology that companies cannot afford to miss: With such a large mobile Internet
population and a fast-growing market size of public cloud services, most Chinese enterprises have set up
plans to deploy cloud computing to pursue business growth in Internet-driven, hyperconnected digital and
e-commerce businesses.
8. Software defined architecture reinforced datacentres to support digital businesses: enterprises today are
keen to find new approaches that can build their data centres with greater flexibility and agility, so they can
agilely transform IT to adapt o challenges of competitive digital businesses. In China, software-defined
architecture (SDx) is not developing equally. It is progressing at different speeds and maturity, based on
the competitive landscape externally or operational requirement internally.
9. Web-scale IT will help business keep pace with digital innovation: web-scale IT is a pattern of global-class
computing that delivers the capabilities of large cloud service providers to the enterprise. As China has the
worlds larges mobile population, Chinese enterprises must embrace web-scale IT to support their growing
digital business needs.
10. Digital business demands risk-based security and self-protection: security and risk management has been
a major challenge in China. This is due to its position as the worlds largest, versatile growth engine with a
large population of mobile and Internet users, various types of endpoint devices, multiple ecosystems and
growing numbers of companies being digitalized.

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"Top 10 Strategic Technology Trends for China in 2015-2016." Gartner. Retrieved on 28 December 2015.
At this time, the following environmental issues play parts in China:
- Air pollution from reliance on coal produces acid rain;
- China is the worlds largest single emitter of carbon dioxide from the burning of fossil fuels;
- Water shortage, particularly in the north;
- Water pollution from untreated wastes;
- Deforestation;
- Estimated loss of one-fifth of agricultural land since 1949 to soil erosion and economic development;
- Desertification;
- Trade in endangered species.
China is party to the following international agreements
Antarctic-Environmental Protocol, Antarctic Treaty, Biodiversity, Climate Change, Climate Change-Kyoto Protocol,
Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Marine
Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands, Whaling.
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th
The overall score of the country leads to a global ranking and an overall score out of 100. China ranks on the 118
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place on earth with an overall score of 43 out of hundred .
World Risk Index
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a high level op exposure to natural hazards coincides with very vulnerable societies . The WRI for China is 6,80%.
China is frequently hit by typhoons (about five per year along southern and eastern coasts), damaging floods,
tsunamis, earthquakes, droughts and land subsidence. China contains some historically active volcanoes including
Changbaishan, Hainan Dae and Kunlun although most have been relatively inactive in recent centuries.
Political (& Legal)
The Peoples Republic of China is a communist state and counts 23 provinces called sheng, five autonomous
regions (zizhiqu) and four municipalities (shi). Chinas National Day is the anniversary of the founding of the
Peoples Republic of China of October first in 1949.
th
President XI Jinping and Vice President LI Yuanchao lead China since March 14 2013. The head of the
government is Premier LI Kequiang. National Peoples Congress appoints the State Council. The president and
vice president are indirectly elected by National Peoples Congress for a 5-year term and are eligible for a second
term. Municipal, regional and provincial peoples congresses, and the Peoples Liberation Army indirectly elect
National Peoples Congress members.
The Chinese civil law is influenced by Soviet and continental European civil law systems. Legislature retains power
to interpret statutes. The criminal procedure law is revised in early 2012. China has not submitted an ICJ
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jurisdiction declaration and is a non-party state to the ICCt.

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"Government." CIA.gov, World Fact Book China. Retrieved on 21 December 2015.
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Both formal and informal rules, which firms must abide by, impact the country. Many people claim that the political
force is the most unsettled force. Over the past view years, the government focused on the development of ecommerce. The legal framework for e-commerce is still in its early stage. China has little experience for drafting ecommerce legislation for topics like intellectual property rights protection and tax. There arent any regulations
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supporting the privacy, recognition of digital signatures, consumer rights and validation of electronic contracts .
Import restrictions
In general terms, the EU imposes its restrictive measures to bring about a change in policy or activity by the target
country, part of a country, government, entities or individuals. They are a preventive, non-punitive, instrument,
which would allow the EU to respond swiftly to political challenges and developments. The consequences of being
found guilty of breaching sanctions are serious. A number of financial institutes have been subject to multi-million
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dollar fines and settlements with USA and UK regulators for sanction breaches .
The following restrictive measure applies to China: Embargo on arms
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risk country .
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. China is a sanction country AND a high

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found . China doesnt charge import duties and charges 17% sales tax.
Trade promotions
Although the relationship between Japan and China is getting stronger, it isnt strong enough for a Free Trade
Agreement or better: an Economical Partnership Agreement. For several years there have been negotiations,
443444
which unfortunately didnt led to an agreement yet
.
Political Stability by The Global Innovation Index 2015
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China is being assessed with 44% political stability.
The heritage of empire makes contemporary China a political entity that struggles to find a political form. This task
is made even more difficult by the legacy of Western and Japanese imperialism and the Cold War during the last
two centuries. Taiwan (asserting itself as an independent republic), Honk Kong and Macau (with the status of
special administrative region), but also Tibet, Xinjiang, Inner Mongolia, Ningxia and Guangxi (all autonomous
regions) claim or have been given various degrees of autonomy or independency from the government of the
Peoples Republic of China. As a modern nation-state China therefore is anything but a finished product, and is
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probably best described as a work in progress .

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"E-commerce in China." Pestle Analysis. Retrieved on 21 December 2015.

"Embargoes and Sanctions - what international companies need to know" Out-Law.com. Retrieved on 30 November 2015.
439
"Import Restrictions China." BSCN.nl. Retrieved on 8 December 2015.
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"Sanction countries." Riskworld.nl. Retrieved on 6 December 2015.
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442
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"China-Japan trade negotiations." China FTA Network. Retrieved on 16 December 2015.
444
445
438
446
"China = Work in Progress." Leiden University, Frank N. Pieke. Retrieved on 23 December 2015.
XVII.
6D MODEL & CULTURAL HABITS

447
Geert Hofstede 6-D Model

Professor Dr. Hofstede has developed two models on culture. The model on national culture was developed based
on data collected from within IBM during the 60s and 70s and revalidated in 2005 by Michael Bond and in 2009
by Misho Minkov. Natural Culture is about the value differences between groups of nations and/or regions. The
Organisational Culture is about differences in practices between organisations and/or parts within the same
organisation (sub-cultures). This chapter is based on the book Cultures and Organizations: Software of the Mind
Revised and Expanded third edition (G. Hofstede, G.J. Hofstede, M. Minkov, 2010). The definition of culture: The
programming of the human mind with which one group distinguishes itself from another group.
In this chapter youll find more information about the Chinese, Mexican, Malaysian and Brazilian national and
organisational culture. The first paragraph elaborates the operation of the six-dimension model of Geert Hofstede.
1.1
National Culture
Professor Geert Hofstede conducted one of the most comprehensive studies of how values in the workplace are
influenced by culture. He defines culture as the collective programming of the mind distinguishing the members
of one group or category of people from others. The six dimensions of national culture are based on extensive
research done by Professor Geert Hofstede, Gert Jan Hofstede, Michael Minkov and their research teams.
The model of national culture consists of six dimensions. The cultural dimensions represent independent
preferences for one state of affairs over another that distinguishes countries (rather than individuals) from each
other. The country scores on the dimensions are relative, as we are all human and simultaneously we are all
unique. In other words, culture can be only used meaningfully by comparison. The model consists of the following
dimensions:
This dimension expresses the degree to which the less powerful members of a society accept and expect that
power is distributed unequally. The fundamental issue here is how a society handles inequalities among people.
People in societies exhibiting a large degree of Power Distance accept a hierarchical order in which everybody has
a place and which needs no further justification. In societies with low Power Distance, people strive to equalise the
distribution of power and demand justification for inequalities of power.
The high side of this dimension, called individualism, can be defined as a preference for a loosely knit social
framework in which individuals are expected to take care of only themselves and their immediate families. Its
opposite, collectivism, represents a preference for a tightly-knit framework in society in which individuals can
expect their relatives or members of a particular in-group to look after them in exchange for unquestioning loyalty.
A societys position on this dimension is reflected in whether peoples self-image is defined in terms of I of we.
The Masculinity side of this dimension represents a preference in society for achievement, heroism, assertiveness
and material rewards for success. Society at large is more competitive. Its opposite, femininity, stands for a
preference for cooperation, modesty, caring for the weak and quality of life. Society at large is more consensusoriented. In the business context Masculinity versus Femininity is sometimes also related to as tough versus
tender cultures.

447
Book: Cultures and Organizations: Software of the Mind. Revised and Expanded 3rd edition, New York: McGraw-Hill USA, 2010. Author: G.
Hofstede, G.J. Hofstede, M. Minkov (2010).
170

The Uncertainty Avoidance dimension expresses the degree to which the members of a society feel uncomfortable
with uncertainty and ambiguity. The fundamental issue here is how a society deals with the fact that the future can
never be known: should we try to control the future or just let it happen? Countries exhibiting strong UAI maintain
rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. Weak UAI societies
maintain a more relaxed attitude in which practice counts more than principles.
Every society has to maintain some links with its own past while dealing with the challenges of the present and the
future. Societies prioritize these two existential goals differently. Societies who score low on this dimension, for
example, prefer to maintain time-honoured traditions and norms while viewing societal change with suspicion.
Those with a culture which scores high, on the other hand, take a more pragmatic approach: they encourage thrift
and efforts in modern education as a way to prepare for the future. In the business context this dimension is related
to as (short term) normative versus (long term) pragmatic (PRA).
Indulgence stands for a society that allows relatively free gratification of basis and natural human drives related to
enjoying life and having fun. Restraint stands for a society that suppresses gratification of needs and regulated it by
means of strict social norms.
448
1.2
Malaysian culture through 6D-model
If we explore the Malaysian culture through the lens of the 6-D Model of Geert Hofstede, we can get a good
overview of the deep drivers of Malaysian culture relative to other world cultures.
Power Distance
This dimension deals with the fact that all individuals in societies are not equal it expresses the attitude of the
culture towards these inequalities amongst us. Malaysia scores very high on this dimension (score of 100) which
means that people accept a hierarchical order in which everybody has a place and which needs to further
justification. Hierarchy in an organisation is seen as reflecting inherent inequalities, centralization is popular,
subordinates expect to be told what to do and the ideal boss is a benevolent autocrat. Challenges to the
leadership are not well-received.
Individualism
The fundamental issue addresses by this dimension is the degree of interdependence a society maintains among
its members. Malaysia, with a score of 26 is a collectivistic society. This is manifest in a close long-term commitment
to the member group, be that a family, extended family of extended relationships. Loyalty in a collectivist culture
is paramount and overrides most other societal rules and regulations. Such a society fosters strong relationships,
where everyone takes responsibility for fellow members of their group. In collectivistic societies, offence leads to
shame and loss of face. Employer/employee relationships are perceived in moral terms (like a family link); hiring
and promotion take account of the employees in-group. Management is the management of groups.
Masculinity
A high score (masculine) on this dimension indicates that the society will be driven by competition, achievement
and success, with success being defined by the winner/best in field a value system that starts in school and
continues throughout organizational life. A low score (feminine) on the dimension means that the dominant values
in society are caring for others and quality of life. A Feminine society is one where quality of life is the sign of
success and standing out from the crowd is not admirable. With an intermediate score of 50, a preference for this
dimension cannot be determined.
The dimension Uncertainty Avoidance has to do with the way that a society deals with the fact that the future can
never be known: should we try to control the future or just let it happen? This ambiguity brings with it anxiety and
different cultures have learnt to deal with this anxiety in different ways.

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"Malaysia through 6-D Model." Geert Hofstede. Retrieved on 20 December 2015.
Malaysia scores 36 on this dimension and thus has a low preference for avoiding uncertainty. Low UAI societies
maintain a more relaxed attitude in which practice counts more than principles and deviance from the norm is
more easily tolerated. In societies exhibiting low UAI, people believe there should be no more rules than are
necessary and if they are ambiguous or do not work, they should be abolished or changed. Schedules are flexible,
hard work is undertaken when necessary but not for its own sake. Precision and punctuality do not come naturally
and innovation is not seen as threatening.
This dimension describes how every society has to maintain some links with its own past while dealing with the
challenges of the present and future, and societies prioritize these two existential goals differently. The low score
of 41 in this dimension means that Malaysia has a normative culture. People in such societies have a strong
concern with establishing the absolute truth; they are normative in their thinking. They exhibit great respect for
traditions, a relatively small propensity to save for the future, and a focus on achieving quick results.
Indulgence
This dimension is defined as the extent to which people try to control their desires and impulses, based on the way
they were raised. Relatively weak control is called Indulgence and relatively strong control is called Restraint.
Malaysia's high score of 57 indicates that the culture is one of Indulgence. People in societies classified by a high
score in indulgence generally exhibit a willingness to realize their impulses and desires with regard to enjoying life
and having fun. They possess a positive attitude and have a tendency towards optimism. In addition, they place a
higher degree of importance on leisure time, act as they please and spend money as they wish.
Malaysian Business Culture
449
Meeting and Greeting

Greetings in a social context will depend upon the ethnicity of the person you are meeting. In general, most Malays
are aware of Western ways so the handshake is normal. There may be slight differences though and a few things to
bear in mind include:
Malay women may not shake hands with men. Women can of course shake hands with women. Men may
also not shake hands with women and may bow instead while placing their hand on their heart.
The Chinese handshake is light and may be rather prolonged. Men and women may shake hands,
although the woman must extend her hand first. Many older Chinese lower their eyes during the greeting
as a sign of respect.
Indians shake hands with members of the same sex. When being introduced to someone of the opposite
sex, nodding the head and smiling is usually sufficient.
Among all cultures, there is a general tendency to introduce:
The most important person to the lower ranking person.
The older person to the younger person.
Women to men.
Within the business context most Malaysian businesspeople are culturally savvy and internationally exposes. Your
experience may very well depend upon the ethnicity, age, sex and status of the person you are meeting. The best
approach is always friendly yet formal. A few tips include:
Initial greetings should be formal and denote proper respect.
If in a team, introduce the most important person first.
Many Malays and Indians are uncomfortable shaking hands with a member of the opposite sex.
Foreign men should always wait for a Malaysian woman to extend her hand. Foreign women should also
wait for a Malaysian man to extend his hand.
To demonstrate respect Chinese may look downwards rather than at the person they are meeting.
It is important that professional titles (professor, doctor, engineer) and honorific titles are used in business.
Malays and Indians use titles with their first name while Chinese use titles with their surname.

449
"Business Etiquette Malaysia." Kwint Essential. Retrieved on 20 December 2015.
172
Business Card Etiquette

Business cards are exchanged after the initial introductions.
If you will be meeting Chinese, have one side of your card translated into Chinese, with the Chinese
characters printed in gold.
If you will be meeting government officials, have one side of your card translated into Bahasa Malaysia.
Use two hands or the right hand only to exchange business cards.
Examine any business card you receive before putting it in your business card case.
The respect you show someone's business card is indicative of the respect you will show the individual in
business. Act accordingly.
Never write on someone's card in their presence.
Communication
As an extension to the need to maintain harmonious relations, Malaysians rely on non-verbal communication (i.e.
facial expressions, tone of voice, body language, et cetera). Such a communication style tends to be subtle,
indirect and Malays may hint at a point rather than making a direct statement, since that might cause the other
person to lose face. Rather than say "no", they might say, "I will try", or "Ill see what I can do". This allows the
person making the request and the person turning it down to save face and maintain harmony in their relationship.
If you are unsure about the affirmative response you received, you may want to continue the discussion, rephrasing the question in several different ways so that you may compare responses. If the response was
given because the Malaysian did not know how to respond in the negative without causing offense, this
may come out. Alternatively, they may have someone else give you the bad news.
Silence is an important element of Malaysian communication. Pausing before responding to a question
indicates that they have given the question appropriate thought and considered their response carefully.
Many Malaysians do not understand the Western propensity to respond to a question hastily and can
consider such behavior thoughtless and rude.
Malaysians may laugh at what may appear to outsiders as inappropriate moments. This device is used to
conceal uneasiness.
Do not show anger in public as it makes Malaysians uncomfortable and creates a feeling of powerlessness.
There is a greater chance of achieving a good outcome id you are calm, whereas little is resolved by
shouting.
Business Meetings
It is a good idea for the most senior person on your team to enter first so that he or she is the first to greet
the most senior Malaysian.
This gives face to both parties as it demonstrates respect towards the Malaysian and shows that you
respect hierarchy within your company.
It is customary for leaders to sit opposite each other around the table.
Many companies will have their team seated in descending rank, although this is not always the case.
Expect the most senior Malaysian to give a brief welcoming speech. You need not reciprocate.
There will be a period of small talk, which will end when the most senior Malaysian is comfortable moving
to the business discussion.
Meetings may be conducted or continue over lunch and dinner.
Meetings, especially initial ones, are generally somewhat formal. Treat all Malaysian participants with
respect and be cautious not to lose your temper or appear irritated.
At the first meeting between two companies, Malaysians will generally not get into in-depth discussions.
They prefer to use the first meeting as an opportunity to get to know the other side and build a rapport,
which is essential in this consensus-driven culture.
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1.3
Chinese culture through 6-D Model
If we explore the Chinese culture through the lens of the 6-D Model, we can get a good overview of the deep
drivers of Chinese culture relative to other world cultures.
Power Distance
culture towards these inequalities amongst us. At 80 China sits in the higher rankings of PDI i.e. a society that
believes that inequalities amongst people are acceptable. The subordinate-superior relationship tends to be
polarized and there is no defense against power abuse by superiors. Individuals are influenced by formal authority
and sanctions and are in general optimistic about peoples capacity for leadership and initiative. People should not
have aspirations beyond their rank.
Individualism
The fundamental issue addressed by this dimension is the degree of interdependence a society maintains among
its members. It has to do with whether peoples self-image is defined in terms of I or We. At a score of 20 China
is a highly collectivist culture where people act in the interests of the group and not necessarily of themselves. Ingroup considerations affect hiring and promotions with closer in-groups (such as family) are getting preferential
treatment. Employee commitment to the organization (but not necessarily to the people in the organization) is
low. Whereas relationships with colleagues are cooperative for in-groups they are cold or even hostile to outgroups. Personal relationships prevail over task and company.
Masculinity
and success, with success being defined by the winner / best in field a value system that starts in school and
continues throughout organizational life. A low score (feminine) on the dimension means that the dominant values
in society are caring for others and quality of life. At 66 China is a Masculine society success oriented and driven.
The need to ensure success can be exemplified by the fact that many Chinese will sacrifice family and leisure
priorities to work. Service people (such as hairdressers) will provide services until very late at night. Leisure time is
not so important. The migrated farmer workers will leave their families behind in faraway places in order to obtain
better work and pay in the cities. Another example is that Chinese students care very much about their exam
scores and ranking, as this is the main criterion to achieve success or not.
different cultures have learnt to deal with this anxiety in different ways. At 30 China has a low score on Uncertainty
Avoidance. Truth may be relative though in the immediate social circles there is concern for Truth with a capital T
and rules (but not necessarily laws) abound. Nonetheless, adherence to laws and rules may be flexible to suit the
actual situation and pragmatism is a fact of life. The Chinese are comfortable with ambiguity; the Chinese language
is full of ambiguous meanings that can be difficult for Western people to follow. Chinese are adaptable and
entrepreneurial. At the time of writing the majority (70% -80%) of Chinese businesses tend to be small to medium
sized and family owned.
challenges of the present and future, and societies prioritize these two existential goals differently. China scores
87 in this dimension, which means that it is a very pragmatic culture. In societies with a pragmatic orientation,
people believe that truth depends very much on situation, context and time. They show an ability to adapt
traditions easily to changed conditions, a strong propensity to save and invest, thriftiness, and perseverance in
achieving results.

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"China through 6-D Model." Geert Hofstede. Retrieved on 20 December 2015.
174
Indulgence
One challenge that confronts humanity, now and in the past, is the degree to which small children are socialized.
Without socialization we do not become human. This dimension is defined as the extent to which people try to
control their desires and impulses, based on the way they were raised. China is a restrained society as can be seen
in its low score of 24 in this dimension. Societies with a low score in this dimension have a tendency to cynicism
and pessimism. Also, in contrast to Indulgent societies, restrained societies do not put much emphasis on leisure
time and control the gratification of their desires. People with this orientation have the perception that their actions
are restrained by social norms and feel that indulging themselves is somewhat wrong.
Chinese business etiquette
451
Relationships & Communication

The Chinese don't like doing business with companies they don't know, so working through an intermediary
is crucial. This could be an individual or an organization who can make a formal introduction and vouch for
the reliability of your company.
Before arriving in China send materials (written in Chinese) that describe your company, its history, and
literature about your products and services. The Chinese often use intermediaries to ask questions that they
would prefer not to make directly.
Business relationships are built formally after the Chinese get to know you.
Be very patient. It takes a considerable amount of time and is bound up with enormous bureaucracy.
The Chinese see foreigners as representatives of their company rather than as individuals.
Rank is extremely important in business relationships and you must keep rank differences in mind when
communicating.
Gender bias is non-existent in business.
Never lose sight of the fact that communication is official, especially in dealing with someone of higher rank.
Treating them too informally, especially in front of their peers, may well ruin a potential deal.
The Chinese prefer face-to-face meetings rather than written or telephonic communication.
Meals and social events are not the place for business discussions. There is a demarcation between business
and socializing in China, so try to be careful not to intertwine the two.
Business Meeting Etiquette
Appointments are necessary and, if possible, should be made between one-to-two months in advance,
preferably in writing.
If you do not have a contact within the company, use an intermediary to arrange a formal introduction. Once
the introduction has been made, you should provide the company with information about your company
and what you want to accomplish at the meeting.
You should arrive at meetings on time or slightly early. The Chinese view punctuality as a virtue. Arriving late
is an insult and could negatively affect your relationship
Pay great attention to the agenda as each Chinese participant has his or her own agenda that they will
attempt to introduce.
Send an agenda before the meeting so your Chinese colleagues have the chance to meet with any technical
experts prior to the meeting. Discuss the agenda with your translator/intermediary prior to submission.
Each participant will take an opportunity to dominate the floor for lengthy periods without appearing to say
very much of anything that actually contributes to the meeting. Be patient and listen. There could be subtle
messages being transmitted that would assist you in allaying fears of on-going association.
Meetings require patience. Mobile phones ring frequently and conversations tend to be boisterous. Never
ask the Chinese to turn off their mobile phones as this causes you both to lose face.
Guests are generally escorted to their seats, which are in descending order of rank. Senior people generally
sit opposite senior people from the other side.
It is imperative that you bring your own interpreter, especially if you plan to discuss legal or extremely
technical concepts as you can brief the interpreter prior to the meeting.

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"Chinese Business Etiquette." Kwint Essential. Retrieved on 20 December 2015.
Written material should be available in both English and Chinese, using simplified characters. Be very careful
about what is written. Make absolutely certain that written translations are accurate and cannot be
misinterpreted.
Visual aids are useful in large meetings and should only be done with black type on white background.
Colours have special meanings and if you are not careful, your colour choice could work against you.
Presentations should be detailed and factual and focus on long-term benefits. Be prepared for the
presentation to be a challenge.
Business Negotiation
Only senior members of the negotiating team will speak. Designate the most senior person in your group
as your spokesman for the introductory functions.
Business negotiations occur at a slow pace.
Be prepared for the agenda to become a jumping off point for other discussions.
Chinese are non-confrontational. They will not overtly say 'no', they will say 'they will think about it' or 'they
will see'.
Chinese negotiations are process oriented. They want to determine if relationships can develop to a stage
where both parties are comfortable doing business with the other.
Decisions may take a long time, as they require careful review and consideration.
Under no circumstances should you lose your temper or you will lose face and irrevocably damage your
relationship.
Do not use high-pressure tactics. You might find yourself outmanoeuvred.
Business is hierarchical. Decisions are unlikely to be made during the meetings you attend.
The Chinese are shrewd negotiators.
Your starting price should leave room for negotiation.
Clothing
Business attire is conservative and unpretentious.
Men should wear dark coloured, conservative business suits.
Women should wear conservative business suits or dresses with a high neckline.
Women should wear flat shoes or shoes with very low heels.
Bright colours should be avoided.
Business Cards
Business cards are exchanged after the initial introduction.
Have one side of your business card translated into Chinese using simplified Chinese characters that are
printed in gold ink since gold is an auspicious colour.
Your business card should include your title. If your company is the oldest or largest in your country, that
fact should be on your card as well.
Hold the card in both hands when offering it, Chinese side facing the recipient.
Examine a business card before putting it on the table next to you or in a business card case.
Never write on someone's card unless so directed.
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452
1.4
Brazilian culture through 6D Model
If we explore Brazils culture through the lens of the 6-D Model, we can get a good overview of the deep drivers of
Brazilian culture relative to other world cultures.
Power Distance
culture towards these inequalities amongst us. With a score of 69, Brazil reflects a society that believes hierarchy
should be respected and inequalities amongst people are acceptable. The different distribution of power justifies
the fact that power holders have more benefits than the less powerful in society. In Brazil it is important to show
respect to the elderly (and children take care for their elderly parents). In companies there is one boss who takes
complete responsibility. Status symbols of power are very important in order to indicate social position and
communicate the respect that could be shown.
Individualism
its members. It has to do with whether peoples self-image is defined in terms of I or We. Brazil has a score of 38
which means that in this country people from birth onwards are integrated into strong, cohesive groups (especially
represented by the extended family; including uncles, aunts, grandparents and cousins) which continues
protecting its members in exchange for loyalty. This is an important aspect in the working environment too, where
for instance an older and powerful member of a family is expected to help a younger nephew to be hired for a
job in his own company. In business it is important to build up trustworthy and long lasting relationships: a meeting
usually starts with general conversations in order to get to know each other before doing business. The preferred
communication style is context-rich, so people will often speak profusely and write in an elaborate fashion.
Masculinity
and success, with success being defined by the winner / best in field a value system that starts in school and
continues throughout organisational life. A low score (feminine) on the dimension means that the dominant values
in society are caring for others and quality of life. Brazil scores 49, a very intermediate score on this dimension.
never be known: should we try to control the future or just let it happen? At 76 Brazil scores high on UAI and so
do the majority of Latin American countries. These societies show a strong need for rules and elaborate legal
systems in order to structure life. The individuals need to obey these laws, however, is weak. If rules however
cannot be kept, additional rules are dictated. In Brazil, as in all high Uncertainty Avoidance societies, bureaucracy,
laws and rules are very important to make the world a safer place to live in. Brazilians need to have good and
relaxing moments in their everyday life, chatting with colleagues, enjoying a long meal or dancing with guests and
friends. Due to their high score in this dimension Brazilians are very passionate and demonstrative people:
emotions are easily shown in their body language.
challenges of the present and future, and societies prioritise these two existential goals differently. Normative
societies, which score low on this dimension, for example, prefer to maintain time-honoured traditions and norms
while viewing societal change with suspicion. Those with a culture that scores high, on the other hand, take a more
pragmatic approach: they encourage thrift and efforts in modern education as a way to prepare for the future. At
44, Brazil scores as intermediate in this dimension.
Indulgence
control their desires and impulses, based on the way they were raised. Brazil's high score of 59 marks it as an

452
"Brazil through 6-D Model." Geert Hofstede. Retrieved on 20 December 2015.
Indulgent society. People in societies classified by a high score in Indulgence generally exhibit a willingness to
realise their impulses and desires with regard to enjoying life and having fun. They possess a positive attitude and
have a tendency towards optimism. In addition, they place a higher degree of importance on leisure time, act as
they please and spend money as they wish.
Brazilian business etiquette
453

Brazilians need to know who they are doing business with before they can work effectively.
Brazilians prefer face-to-face meetings to written communication as it allows them to know the person with
whom they are doing business.
The individual they deal with is more important than the company.
Since this is a group culture, it is important that you do not do anything to embarrass a Brazilian.
Criticizing an individual causes that person to lose face with the others in the meeting.
The person making the criticism also loses face, as they have disobeyed the unwritten rule.
Communication is often informal and does not rely on strict rules of protocol. Anyone who feels they have
something to say will generally add their opinion.
It is considered acceptable to interrupt someone who is speaking.
Face-to-face, oral communication is preferred over written communication. At the same time, when it
comes to business agreements, Brazilians insist on drawing up detailed legal contracts.
Expect questions about your company since Brazilians are more comfortable doing business with people
and companies they know.
Wait for your Brazilian colleagues to raise the business subject. Never rush the relationship- building time.
Brazilians take time when negotiating
Do not rush them or appear impatient.
Expect a great deal of time to be spent reviewing details.
Often the people you negotiate with will not have decision-making authority.
It is advisable to hire a translator if your Portuguese is not fluent.
Use local lawyers and accountants for negotiations.
Brazilians resent an outside legal presence.
Brazilian business is hierarchical.
Decisions are made by the highest-ranking person.
Brazilians negotiate with people not companies.
Do not change your negotiating team or you may have to start over from the beginning.
Business appointments are required and can often be scheduled on short notice; however, it is best to
make them 2 to 3 weeks in advance.
Confirm the meeting in writing. It is not uncommon for appointments to be cancelled or changed at the
last minute.
In Sao Paulo and Brasilia it is important to arrive on time for meetings. In Rio de Janeiro and other cities it is
acceptable to arrive a few minutes late for a meeting.
Do not appear impatient if you are kept waiting. Brazilians see time as something outside their control and
the demands of relationships takes precedence over adhering to a strict schedule.
Meetings are generally rather informal.
Expect to be interrupted while you are speaking or making a presentation.
Avoid confrontations. Do not appear frustrated with your Brazilian colleagues.

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178
Dress Etiquette
Brazilians pride themselves on dressing well.
Men should wear conservative, dark coloured business suits. Three-piece suits typically indicate that
someone is an executive.
Women should wear suits or dresses that are elegant and feminine with good quality accessories.
Manicures are expected.
Business Cards
Business cards are exchanged during introductions with everyone at a meeting.
It is advisable, although not required, to have the other side of your business card translated into
Portuguese.
Present your business card with the Portuguese side facing the recipient.
454
1.5
Mexican culture through 6D Model
If we explore Mexican culture through the lens of the 6-D Model, we can get a good overview of the deep drivers
of Mexican culture relative to other world cultures.
Power Distance
culture towards these inequalities amongst us. At a score of 81, Mexico is a hierarchical society. This means that
people accept a hierarchical order in which everybody has a place and which needs no further justification.
Hierarchy in an organization is seen as reflecting inherent inequalities, centralization is popular, subordinates
expect to be told what to do and the ideal boss is a benevolent autocrat
Individualism
its members. It has to do with whether peoples self-image is defined in terms of I or We. Mexico, with a score of
30 is considered a collectivistic society. This is manifest in a close long-term commitment to the member 'group',
be that a family, extended family, or extended relationships. Loyalty in a collectivist culture is paramount, and overrides most other societal rules and regulations. The society fosters strong relationships where everyone takes
responsibility for fellow members of their group. In collectivist societies offence leads to shame and loss of face,
employer/employee relationships are perceived in moral terms (like a family link), hiring and promotion decisions
take account of the employees in-group, management is the management of groups.
Masculinity
and success, with success being defined by the winner/best in field a value system that starts in school and
continues throughout organisational life. A low score (feminine) on the dimension means that the dominant values
in society are caring for others and quality of life. Mexico scores 69 on this dimension and is thus a Masculine
society. In Masculine countries people live in order to work, managers are expected to be decisive and assertive,
the emphasis is on equity, competition and performance and conflicts are resolved by fighting them out.
different cultures have learnt to deal with this anxiety in different ways. Mexico scores 82 on this dimension and
thus has a very high preference for avoiding uncertainty. Countries exhibiting high Uncertainty Avoidance maintain
rigid codes of belief and behaviour and are intolerant of unorthodox behaviour and ideas. In these cultures there is
an emotional need for rules (even if the rules never seem to work) time is money, people have an inner urge to be
busy and work hard, precision and punctuality are the norm, innovation may be resisted, security is an important
element in individual motivation.

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"Mexico through 6-D Model." Geert Hofstede. Retrieved on 20 December 2015.

challenges of the present and future, and societies prioritise these two existential goals differently. The relatively
low score of 24 means that the Mexican culture is normative. People in such societies have a strong concern with
establishing the absolute Truth; they are normative in their thinking. They exhibit great respect for traditions, a
relatively small propensity to save for the future, and a focus on achieving quick results.
Indulgence
control their desires and impulses, based on the way they were raised. With a very high score of 97, Mexican
culture has a definite tendency toward Indulgence. People in societies classified by a high score in Indulgence
generally exhibit a willingness to realise their impulses and desires with regard to enjoying life and having fun.
They possess a positive attitude and have a tendency towards optimism. In addition, they place a higher degree of
importance on leisure time, act as they please and spend money as they wish.
Business culture Mexico
455

The right connections facilitate business success.
You will be judged by the person who introduces you and changing this first impression is nearly
impossible.
Since the initial meeting is generally with someone of high stature, it is important that your delegation
include an upper-level executive.
After the initial getting-to-know-you meeting, the senior executive may not attend meetings or be visible.
This indicates you are now getting down to business and they are no longer needed to smooth the
introduction.
Demonstrating trustworthiness, sincerity, and integrity are crucial to building relationships.
Expect to answer questions about your personal background, family and life interests.
Business appointments are required and should be made at least 2 weeks in advance. Reconfirm the
appointment one week before the meeting.
Reconfirm the meeting again once you arrive in Mexico and make sure that the secretary of the person you
will be meeting knows how to contact you.
It is important that you arrive on time for meetings, although your Mexican business associates may be up
to 30 minutes late.
Do not appear irritated if this occurs as people often run behind schedule.
Meetings may be postponed with little advance warning.
Initial meetings are formal.
Have all written material available in both English and Spanish.
Agendas are not common. If they are given, they are not always followed.
Since Mexicans are status conscious, you should always have someone on your negotiating team who is an
executive.
If you do not speak Spanish, hire an interpreter.
It will take several meetings to come to an agreement.
Face-to-face meetings are preferred over telephone, letters or email.
Negotiations and decisions take a long time. You must be patient.
Deadlines are seen as flexible and fluid, much like time itself.
Negotiations will include a fair amount of haggling. Do not give your best offer first.
Do not include an attorney on your negotiating team.

455
"Business etiquette Mexico." Kwint Essentials. Retrieved on 20 December 2015.
180
Business Dress
Dress as you would in Europe.
Men should wear conservative, dark coloured suits.
Women should wear business suits or conservative dresses.
Business Cards
Business cards are exchanged during introductions with everyone at a meeting.
It is advisable to have one side of your business card in Spanish.
Business cards should contain both your professional and educational qualifications.
Present your business card with the Spanish side facing the recipient.
XVIII.
MABA Filter criteria
the chosen mark and the weight of the selected criteria. Therefore this chapter is all about the brief explanation
and motivation of the chosen filter criteria.
Business Attractiveness
This part is all about the attractiveness of Sony as a brand. It is about the products, about the company structure,
about brand valuation and reputation of the company. The market share is the only determinant, which makes the
difference. The other choses criteria are all about the Sony brand and do not differ from country to country. It is
possible to investigate the national valuation of the Sony brand or their reputation, but that would be a separate
study.
456
Market share
Market share is an essential part of het MABA analysis. The market share in combination with the market size,
determines whether there is a chance to expand or if we speak of a saturated market. Within this part two criteria
could be distinguished: Market share in percentage (weight 0,15) and Market share in mUSD (weight 0,15).
457
Brand Value & 1-Yr Value Change

Looking out into the world today, its easy to see why brands are more important now than at any time in the past
100 years. Brands are psychology and science brought together as a promise mark as opposed to a trademark.
Products have life cycles. Brands outlive products. Brands convey a uniform quality, credibility and experience.
Brands are valuable. Therefore it is important to know how much the Sony Brand is valued following Forbes.
Secondly, it is also essential to see how the valuation of the company has changes in the past year. Sony grew;
Sony showed us its fighting power to overcome all possible obstructions. These valuations create a higher total
th
score on the business attractiveness edge of the complete story. Sony is listed on 79 place of Worlds Most
458
Valuable Brands following Forbes .
Within this part two criteria could be distinguished: Brand value worldwide in billion USD following Forbes
(weight 0,10) and 1-Yr Value Change Brand Value Worldwide (weight 0,10).
459
Brand Reputation
Although 2015 was another difficult year for Sony from a costly cyber attack to criticism over the decision to not
screen The Interview and a drop in revenue in its entertainment and mobile businesses. However, the company is
showing clear signs of righting its course. Therefore the Interbrand Brand Reputation (weight 0,10) ranking is
called in life. This ranking compares multinationals with each other with a valuation of the brands reputation.
Brand Characteristics
Based on earlier research to write this export advisory report, a couple of criteria to determine the Business
Attractiveness are selected. These are: Distinctiveness (weight 0,10), Distribution Structure (weight 0,05),
Strength Management (weight 0,05), Access financial resources (weight 0,05), Technological Innovation
(weight 0,05) and Quality of the Product (weight 0,10). To survey these subjects the most used sources are the
website of Sony Corporation, their financial report and Annual Reports. Note: It is a subjective assessment of the
brand characteristics.

456
"Market Share" Sony Corporation. Retrieved on 19 December 2015.

"The World's Most Valuable Brands" Forbes. Retrieved 19 December 2015.
458
"Company Profile Sony" Forbes. Retrieved 14 January 2016.
459
"Brand Reputation" Interbrand. Retrieved on 19 December 2015.
457
182
Market Attractiveness
This part of the MABA analysis is all about the market. The results of this part of the analysis are based on results
from previous research in this report, such as the Country Selection Model and the DESTEP analysis to determine
important macro-economic developments. Therefore this part will contain only a brief overview of the used filters.
The market size for consumer electronics (weight 0,05 within the country is an important determinant to
ascertain if the market has enough potential to expand. The same goes for the market / revenue growth (weight
0,15) because this shows the activity of the market. While healthy companies note a growth in sales that is greater
than of equal to the growth of the market, floundering companies record sales growth at a rate below the market.
The market potential 2020 in percentages (weight 0,10) is a calculation based on the absolute amount of market
potential in 2020. This shows how far the market will continue to grow.
The Compound Annual Growth Rate (CAGR) (weight 0,10) is a useful measure of growth over multiple time
periods. This shows the amount that the market for consumer electronics will increase every year and is therefore
an interesting determinant to ascertain whether this country is a potential export market.
The Average Revenue per Paying User per year in 2015 (weight 0,05) is interesting data because it shows what
every consumer will spend on average a year on consumer electronics. So: the higher, the better. The ARPU of the
consumer electronics market forms interesting information within a cost-benefit analysis. This helps you to
understand the most efficient production level at which you should run your business.
Another criterion is the Intensity of the Competition (weight 0,15). A more competitive economy is more likely to
grow faster over time. The concept of competitiveness thus involves static and dynamic components. Although the
determinants of its return on investment, which is one of the key factors explaining an economys growth potential.
The Market Penetration of Consumer electronics (weight 0,10) on the other hand is an interesting fact to see the
possibilities of the market. A low penetration in combination with a high market growth and/or potential
represents a huge chance for expansion. The Number of Users in millions (weight 0,05) is an substantiated
criterion. This shows the absolute amount of users of consumer electronics in the market. A high penetration in a
relative small market might indicate that there are few chances to expand.
Consumption and Demand is an essential aspect. If there is no demand, there is no market. Consumption shows
the actual pattern, which is a derivative of the demand. Someone might want to buy a Sony Television, only this
doesnt proof he will do that. Consumption patterns show the actual movement of the market.
As a company, Sony attaches great value to the environment. Therefore their new market must be concerned with
the environment too. So last but not least, the Environmental Performance Index (weight 0,10). The EPI ranks
how well countries perform on high-priority environmental issues in tow broad policy areas: protection of human
health from environmental harm and protection of ecosystems.
XIX. MABA
ANALYSIS
COMPLETE
EXCEL
184
XX. SUBQUESTIONS INCLUDING RESEARCH QUESTIONS

1. What is Sonys business profile?
a. What are the key industries of Sony Corporation?
b. What are Sonys mission statement, vision and objectives?
c. What are the 4Ps of Sony?
2. Which 13 countries will be eliminated of the list of potential interesting markets?
a. What are the opportunities and threats of the countries?
i. Are there import restrictions or excessive import duties?
ii. Are there uneconomically high transport costs (based on actual distance)?
iii. How high is the risk of disasters based on the World Risk Index?
iv. What are the countrys travel advice, risks and common sense?
v. What are the charged sales tax & import duty rate?
vi. What is the countries level of welfare, based on the Gross Domestic Product
Purchasing Power Parity?
3. Which ten countries will be comprehensively researched and form a possible interesting market
for Sony Corporation?
a. What is the political environment of the country and how can if affect the industry?
i. What is the political stability as measured in the Political Stability Index?
ii. How would you describe the trade relation between Japan and the country?
b. How would you describe the economic statistics of the country?
i. What is the Gross National Product PPP per Capita in USD?
ii. What is the inflation rate of 2015?
iii. What is the size of the population?
iv. What are the export statistics in 2015?
v. What are the yearly exchange rates in percentages?
vi. How much do citizens consume?
4. In which four countries could Sony concentrate their sales efforts in the next five years?
a. How do you describe the market attractiveness in each of the selected countries?
i. How big is the market for consumer electronics in million USD?
ii. What is the product demand for consumer electronics?
iii. What is the growth rate for 2015 in the consumer electronics segment?
iv. What is the market potential for consumer electronics in 2020 in percentages?
v. What is the Compound Annual Growth rate from 2014 to 2020?
vi. What is the average revenue per user (ARPU) in the consumer electronics segment
in 2015?
vii. What is the intensity of the competition?
viii. What is the user penetration of consumer electronics per country in percentages
and absolute numbers?
ix. What are the environmental concerns for the industry?
b. How do you describe the business attractiveness of Sony Corporation in each of the
selected countries?
i. What is Sonys current market share in these countries?
ii. How do people value perception Sonys products/services?
iii. What is the brand reputation of Sony Corporation?
iv. How strong on a scale from one to five is Sonys distinctiveness?

v. How powerful is Sonys distribution structure on a scale of one to five?
vi. What is the strength of Sonys management on a scale of one to five?
vii. How much financial resources Sony has at its disposal on a scale of one to five?
viii. How robust is the technological innovation of Sony on scale of one to five?
ix. How would you evaluate the product quality on a scale of one to five?
c. What are the most relevant macro-economic developments for each of the four countries?
i. What are the demographical developments, trends and stats?
ii. What are the economic developments, trends and stats?
iii. What are the socio-cultural developments, trends and stats?
iv. What are the technological developments, trends and stats?
v. What are the environmental developments, trends and stats?
vi. What are the political / legal developments, trends and stats?
d. What is the relevant business culture in each of the selected countries?
i. How does the country culture look like through the 6-Dimensions model of
Hofstede?
ii. Which important issues should be considered when doing business in the country?
5. Which country should have the strategic focus of Sony Corporation and how should Sony
prioritize the strategic focus of Sony over the key industries?
a. Which target groups can be distinguished within the selected country?
b. What are the most attractive industries in the selected country?
c. Which regions in the selected country should Sony Corporation focus on?
d. How should Sony position the Sony-brand within the selected country?
e. What strategy should Sony use within the selected country?
186

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Consultancy report

THE ULTIMATE EMERGING

THE ULTIMATE EMERGING

Ria van der Veen

Amsterdam, 21st January 2016

THE ULTIMATE EMERING MARKET

THE ULTIMATE EMERING MARKET

MALAYSIA [ DESTEP / 6D MODEL / MABA ]

MEXICO [ DESTEP / 6D MODEL / MABA ]

BRAZIL [ DESTEP / 6D MODEL / MABA ]

MALAYSIA [ DESTEP / 6D MODEL / MABA ]

ADVICE & STRATEGY

COUNTRY SELECTION MODEL

THE ULTIMATE EMERING MARKET

THE ULTIMATE EMERING MARKET

In the detailed survey the attention is focussed on

THE ULTIMATE EMERING MARKET

Main research objective

1.1 Mission Statement, Vision, Corporate Objectives

THE ULTIMATE EMERING MARKET

Corporate Social Responsibility (CSR) at Sony10

1.2 The Marketing Mix

"Corporate Strategy." Sony Corporation. Retrieved on 4 January 2016.

Consumer Electronics11: Mobile, Tablets & Smart Devices12

"Consumer Electronics." Retrieved on 23 November 2015.

THE ULTIMATE EMERING MARKET

"Process" Marketingteacher.co.uk. Retrieved on 4 January 2016.

THE ULTIMATE EMERING MARKET

THE ULTIMATE EMERING MARKET

2.1 The Country Selection Model

2.2 The Pre-filter analysis

THE ULTIMATE EMERING MARKET

Import duties & Sales tax

THE ULTIMATE EMERING MARKET

Gross Domestic Product, Purchasing Power Parity

THE ULTIMATE EMERING MARKET

THE ULTIMATE EMERING MARKET

3.1 The Rough Scan

THE ULTIMATE EMERING MARKET

Political Stability Index

Gross National Income, Purchasing Power Parity per capita in USD

Size of the population

Exchange rates yearly in percentages

THE ULTIMATE EMERING MARKET

THE ULTIMATE EMERING MARKET

THE ULTIMATE EMERING MARKET

4.1 The Detailed Survey

Consumption & Demand

Environmental Performance Index

THE ULTIMATE EMERING MARKET

THE ULTIMATE EMERING MARKET

THE ULTIMATE EMERING MARKET

The overall infrastructure of Malaysia is one of the most developed countries in

THE ULTIMATE EMERING MARKET

5.2 Six Dimensions Model

THE ULTIMATE EMERING MARKET

5.3 MABA analysis

THE ULTIMATE EMERING MARKET

THE ULTIMATE EMERING MARKET

There is a growing demand for consumer electronics in Mexico. As the economy

THE ULTIMATE EMERING MARKET

6.2 Six Dimensions Model

THE ULTIMATE EMERING MARKET

6.3 MABA analysis